If you run a business out of your home, you may think that you do not need to purchase business insurance simply due to the small size of your company. However, the fact is, that even home businesses can benefit from this type of insurance coverage. Continue reading below to learn more about three of the reasons you should seriously consider purchasing business insurance for your home business.
#1: Your Home Insurance Policy Will Not Protect Your Business Assets
If you think that your business equipment and inventory will be protected by your home insurance simply because it is located inside your home, you are wrong. Most home insurance policies specifically exclude coverage for any business-related items that are located within the home. This means that if this equipment or inventory is stolen or damaged, you will need to cover the cost of this loss on your own. By choosing to purchase business insurance for your home business, you can be sure that all of your business assets are covered. This can be an important part of protecting the financial future of your small business.
#2: Home Businesses Can Still Be Held Liable
The fact that your business is located inside your home does not have any impact on the fact that your business can still be held liable in a personal injury or breach-of-contract lawsuit. If your company is ever named in a lawsuit, you could find yourself paying a large judgment out of your own pocket. This type of situation can easily bankrupt a small business. Thankfully, you can protect yourself against these types of lawsuits simply by choosing to purchase business insurance coverage. While this insurance coverage may not be able to prevent a lawsuit from being filed against you, it certainly can protect you against the financial fallout that may result.
#3: Business Insurance Helps To Promote A Professional Image
It is important for you to present a professional image to potential customers if you wish to remain competitive with larger companies in your area. One of the ways in which you can do this is to carry adequate business insurance. This is especially true if you provide services that are completed at the customer's home. This is because, in the absence of business insurance, your customers could find themselves liable for any injuries that occur while you are working on their property. That is precisely why many homeowners choose to only work with contractors that are fully insured.
Contact a local business insurance service to learn more.Share