It’s a part-time business; I don’t need business insurance, right?
Unemployment still touching double digits, many folks are now under employed. It’s estimated that 1 in 4 people today are doing some type of business from home. It may be an MLM (multilevel marketing), consulting, small engine repair, house cleaning, or handyman service to name a few.
Regardless of what your business venture is, if you are operating out of your home, including basement and garage, there are serious risk issues. Your homeowner’s policy is designed for your personal and residential use, period.
Sure, there may be some very basic coverage for some small business items, it is imperative to understand, there is absolutely no liability coverage. For instance, you have a customer come to pick up a lawn mower or sign a contract and fall and get injured. Your homeowner’s policy which normally would cover this will now deny the claim.
You have now not only exposed your business, but your home and family to major risk. This exposure is far too large to leave unchecked. One lawsuit can wipe out everything you have ever worked for and more. Don’t assume because you are at home, your automatically covered.
The first step is to talk to a licensed insurance professional to determine what needs and risk your specific business venture has. No matter what the size of the business, two basic insurance needed are general liability and property insurance. In addition, some types of businesses may need professional liability insurance. This is errors and omissions insurance to protect you for the service and recommendations provided.
Working with a licensed professional who understands small business is important to starting your new business on the road to success.