What Kind of Business Insurance Do I Need for My Home Based Business?

     The types and amount of insurance that you need for your small business are based on several factors. What type of business are you in? Where is it located? Do you have employees?

     Home Based Businesses usually have no employees other than the owner with relatively little revenue. However, most successful businesses start as a home based business. Because it is a home based business doesn’t mean that the business shouldn’t be insured. Every business—including home-based businesses—should be insured against loss of property, products, and liability. Homeowners insurance alone will not necessarily cover your home-based business against business property loss or liability. For example, if you are selling products over the internet and use your garage for storage, in the event of a fire or theft your homeowners policy will not cover your business property or the products that you sell. Another alarming example, is if you sell a defective product that causes harm or bodily injury to your customer and your customer sues you for liability, your homeowners insurance will not cover you.

     A common small business policy—called a BOP (Business Owners Policy) is usually available only for businesses with fewer than 100 employees and revenues of up to about $5 million or less. While you can purchase customized insurance to cover your specific type of business, insurers offer standardized small business policies that enable you to affordably protect your company against the most common risks. A BOP policy for a home based business will include coverage for business property, liability, and products. This package policy is similar to an auto or home insurance policy in that it covers the basic perils that small business owners face and additional coverage can be increased or added by endorsement. BOP policies are also very affordable with most policies costing about $500 per year.

If you are one of the millions of home based business owners, congratulations, but now is the time think about protecting your business from unexpected losses with a business owners policy. Call or email us for a quote at 214-275-8372 or Click Here for an Online Quote.

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