Is your home-based business properly insured?

Running a business from your home not only requires time, energy and determination, but also the right insurance coverage. Many home-based business owners believe their home or tenant insurance provides coverage if they have a claim related to their business. Unfortunately, there is no overlap between your personal home insurance and business. If you do not inform your broker or insurance company about your home-based business, your home insurance may become invalid. Make sure you understand the risks facing your business and be sure to have proper coverage.

Don’t underestimate the value of your inventory, supplies, tools, computers and other essential items for the day to day operation of your business. Could you afford to replace your business related items if they were stolen or damage occurred? Home-based business insurance provides coverage for your business property and equipment. Make sure you update the value of your business every year and adjust your insurance policy limits accordingly.

Any business products or commercial tools being transported in your car are not automatically covered by your auto or home insurance policy. However, a home-based business insurance policy may provide this coverage. Contact your BrokerLink broker to update your auto insurance to make sure you are covered in case of an accident while travelling for business.

If a customer visiting your home slips and falls, you would be responsible for the medical and legal costs. Home-based business insurance can include liability coverage to protect you against these risks and the associated costs.

Insurance options for your home-based business

There are different insurance options for home-based businesses and your BrokerLink brokercan offer advice on which one best meets your needs. You may be able to add a home business extension policy to your home insurance policy. Alternatively an in-home business insurance policy can provide coverage for business property and liability coverage specific to your business needs. For a home-based business operating in multiple locations, you would require a commercial insurance policy.

Are you transporting your products or tools?

Any business products or commercial tools being transported in your car are not automatically covered by your personal car or home insurance policies. You may require additional coverage for your property through:

• Transportation Floater – Products that leave your home are covered under this floater while en route to the customer or for final distribution.
• Tool Floater – Hand tools that leave the premises and are used at other locations can be covered under this coverage.
  Your BrokerLink broker can also update your auto insurance to make sure you are covered in the event of an accident while travelling for business.

Additional coverage options to consider

Cyber risk coverage – In the event of a cyber attack such as a virus, data breach or hacking, this coverage can help protect your business against the resulting financial effects.

Business interruption – In the event of an incident that results in you having to halt or cease operations, this coverage can help cover the costs of lost revenue and additional expenses associated with being temporarily shut down.

Crime coverage – This coverage will protect your business in the event of a crime, such as a robbery or fraudulent act.
Depending on the type of home-based business you have, not all coverage options apply, and other coverage options may be available. Check out our blog Types of Insurance Coverage Your Business Needs for more information on risks and coverage.

Speak to your broker

Whether you are just starting out or have years of experience running a business from your home, you want to be sure you have the right coverage in place. Your BrokerLink broker can offer advice on which insurance option best meets your home-based business needs.