For over a decade, 50% of U.S. businesses have been home-based businesses.
In many ways home-based businesses are the oldest form of business organization. A throw-back to the bartering merchants and the local blacksmiths of history. Home-based businesses are still very important in the American economy comprising about 50% of all businesses in the United States. With the advent of technology and e-commerce a small business can reach customers across the world at a moments notice. However, home business owners often overlook the utility of the various insurance policy options that can adequately protect them from the many issues that can arise in any business.
Just like larger operations, different industries face unique risks. Anticipating these risks and acquiring insurance that will help protect you from these risks can save you time and money. Adequate insurance may even save your business in the event of an emergency. Do not believe that your home-owners insurance policy will be enough to protect you. Depending on the size of your business as well as the amount of risk in your industry you may want to consider either endorsements to your current policy or research options for specific coverage.
For Example…
If your business deals with customer data you may want to acquire cyber liability insurance. This type of policy can help you deal with legal expenses in the event of a data breach. If sensitive data finds its way into a malicious persons hands it threats the financial safety of your customers. They may feel distraught enough to take legal actions against you and your business.
Cyber crimes are on the rise. The FBI estimates the 2018 cost of cyber crime at $2.7 billion.
Although cyber crime is on the rise there is, unfortunately, still regular crime such as burglary. A home-break in is bad enough. But for a home-business owner it can mean far worse than broken windows and a missing television. When burglars take your work laptop they will have access to all your businesses information. On top of the set-back your business will face they can use this information to harm your customers. This can hurt your reputation which is difficult to repair. Feel your home-business may be at risk from break-ins? You may want to invest in crime insurance.
A Few More Examples…
If you have customers coming to your home you will want to invest in general liability insurance. General liability will help you deal with costs in the event someone is injured or has their property damaged while they are at your business. If a customer walks through your front door and trips right into auntie Marge’s antique vase they can sue your for the ensuing medical costs.
Driving to meet customers, suppliers, or distributors? You may want to look into business auto insurance. Just like regular auto insurance but for your business. Often if a personal vehicle is being used for business purposes when an accident happens insurance companies will argue that the claim is outside the scope of your normal auto insurance policy.
Investing in a business owners insurance policy is a great way to make your coverage simple yet complete. These policies bundle together business property and business liability insurance into one convenient policy. A policy like this will cover your from most risks that your at-home business is likely to face.
Independent Insurance Agents
At Konen Insurance we want you to have as little insurance as necessary to protect your business. This keeps your operations costs as low as possible which we like. Often times it is not a matter of paying more for coverage but instead finding specific types of coverage that will benefit you the best. Contact us today to review your coverage and other options that will suit your unique needs. As an independent insurance agency we are here to help you over carriers.
