Who hasn’t dreamed of working from home? The prospect of being your own boss, setting your own hours and doing it all in the comfort of your own home seems to fall under the “no-brainer” category. But running a home-based business without adequate insurance can turn that dream into a nightmare.
Many home-based business owners mistakenly believe that their current homeowners or tenants insurance policy will cover their new business enterprise. However, other than providing very limited coverage for defined business property, a homeowners insurance policy is not designed to cover the contents and unique liability risks associated with operating a business. For example, a home insurance policy does not extend liability coverage to clients or couriers visiting your home.
You should also take into account the risk of taking business-related equipment outside of your home. A regular homeowners policy will not cover these losses either.
Liability is perhaps the greatest risk associated with your home-based business. What if a client falls while entering or exiting your home? Or, what if you are sued because of problems with the product or service you provide?
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