Insuring a home-based business
If you run a home-based business, it won't be covered by your basic home insurance. You'll need to buy extra insurance coverage.
7 things to consider
1. Business equipment, inventory and supplies
If you keep these at home but haven't itemized them in your home policy, most policies will limit how much you can claim. If you travel with a laptop or other business equipment, you may need extra insurance.
2. Employees or clients coming to your home
Your home policy won’t cover you if employees or clients get hurt while in your home.
3. Providing services at a client’s site
You may need insurance to protect yourself from any claims that a client might make after you complete your work and leave. Examples: personal trainers, housekeepers.
4. Using your car for business purposes
You’ll need special car insurance.
5. Claims against products you sell
You may need insurance to protect your business against any claims that your product does not work well.
6. Claims against services or professional advice
You may need to protect yourself and your clients. For example, malpractice insurance protects you from claims if a treatment goes wrong. Or you may need insurance to protect yourself if a client sues you because your advice was poor, incomplete or just plain wrong.
7. Lost income
You may need disability insurance in case you’re hurt or unable to work. Also consider insurance to cover your lost revenue if a disaster like a fire or flood hits your business.