Do I Need Insurance for My Part Time Business?

A 2012 survey reports that 9.5% of households include a home office. Some of these home offices are actually telecommuters who work remotely from home, but most are small businesses of one sort or another.

If you own one of these small, part time businesses, you want to be sure to put some sort of part time business insurance in place. Do not make the mistake that many small business owners have made: do not assume that your homeowners insurance will cover your business claims.

Most homeowners policies do not cover business-related losses unless you have negotiated a rider with your insurer which changes that. Keep in mind, however, that a rider will only be effective if you have a very simple business, such as one which uses just a computer or a phone.

But if you are manufacturing products or doing repair work of some sort it is likely that you will need something more substantial, such as specific commercial insurance. And, of course, unless you live and work in Texas, you will need workers compensation insurance.

Think for a moment about the risks a home-based business has: theft, natural disaster, damage or perceived damage to a client, and, of course an accident involving your vehicle.

But the biggest risk of all is not having the appropriate insurances!

If you have a small, part time business, you should contact a licensed commercial insurance professional as soon as possible. You will want to work with that professional to determine which insurances you need.

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Part Time Business from Home

In this economy, working from home can be a practical way to supplement your income, and in the 21st century, there are plenty of ways to do that.

You may run a desktop publishing business, or you may make soap. Perhaps you want to sell the quilts you used to make as a hobby or try your hand at creative garden landscape design.

Whatever you decide to do, you must remember that it is a business, even if you only do it on weekends, and make sure you get the proper insurances.

Unfortunately, all too many people who work out of their homes assume that their renter’s or homeowner’s policy will cover any losses incurred due to the home business.

Sadly, those policies do not cover businesses risk. Furthermore, personal automobile insurance policies usually do not cover your auto when it is being used for business purposes.

It is also important to make sure that your home business has all of the permits and licenses required by your city or town, as many policies have exclusion provisions for “illegal acts” which would include business being conducted without those things. Make sure, therefore, to check the specific ordinances and business permitting required by your city or town.

If you are just starting your home business, be sure to meet and discuss with your licensed commercial insurance agent so that together you can determine the right coverage for your home based business.

Do not risk your home and assets on not knowing. If you have a business, you have risk.

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Part Time Home Business Insurance

Do I need business insurance for a part time business with an office at home?

In this economy, working from home can be a great way to supplement your income or start a new business. A home office has a great many benefits such as saving gas and time on commutes, having the flexibility to be home for kids and the family, and being able to start a new business venture with little overhead.

The key point however, is that it is business which is being conducted. Like any other business, it needs to be insured. Many entrepreneurs make the mistake of thinking their business and office is covered with homeowners insurance. Most homeowners policies have very limited coverage (often, a $1,000 limit) on furnishing, computer equipment, and business equipment.

Many folks that utilize a home office and/or work out of their homes make the unfortunate assumption that their homeowner’s or renter’s policy will cover any losses. Those policies don’t cover businesses. Personal auto policies generally do not cover your auto when being used primarily for business purposes.

In addition, many policies have exclusion provisions for ‘illegal’ acts which could include ‘business being conducted in a residential area’ so it’s important to check your town’s specific ordinances and business permitting. Are your customers coming to your home to transact business? Your homeowner’s policy would not cover liability in the event that a customer was injured in some way on your property if it is for a business purpose.

This is a terrible risk to expose yourself, your family, and your home to. You may need a General Liability policy for your business, or a Business Owners Policy, for example. Premiums for these policies are usually not that high for small businesses. If a claim were to occur, such a policy could save your business and you a lot of money and headaches.

If you’re starting our running a business from your home, it’s important to meet and review with your licensed insurance professional how your business operates and conducts business. That way, together you can determine the right coverage for your home based business.

Normally, there will be a liability and property policy needed as well as worker’s compensation. Often, your insurance professional can combine the liability and property coverage into a business owner’s policy.

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Don’t risk your home and assets on assumptions. If you have a business, you have risk. If you’re starting out at home, it’s a big risk. Talk to your licensed insurance professional and learn what is needed to protect your business, no matter how small or large.

Do I need part time business insurance?

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.

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Part Time Business Insurance

Does my part time business need insurance?

A recent survey showed that up to one in ten households operate some type of home based business from their home. Many of these same small, part time business owners have not put some sort of part time business insurance in place. In fact, many of these part time business owners mistakenly think their personal insurance will protect them.

Home based business owners are at risk for serious financial losses in the event of theft, accident, damage or perceived damage to a client, natural disaster, vehicle accident or other types of loss or damage. Most homeowners policies won’t cover business related losses. If you‚ are operating from home, not only can you be risking business property, but personal property which won’t be covered with a business incident.

One possibility is a business rider added to your homeowners policy. If you are writing or just using a phone and computer for your part time business a rider may be all that is needed. However, if you are manufacturing or perhaps doing some type of repair work in your basement, garage or even den, there is a good chance you need more commercial insurance coverage.  If you hire an employee, you must have workers compensation insurance.

The risk of not having appropriate coverage is formidable. If you have started a small, part time business, contact a licensed commercial insurance professional. Work with them to determine what insurance is needed. Typically, you need some type of general liability insurance coverage, business property insurance, and if you have employees, workers compensation.

Don’t risk all you have worked for up until now by avoiding or neglecting this important component of being a business owner. Your licensed insurance professional will guide you to what coverage is needed today, and more important, how to protect the future as you grow your business.

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