Working from home has been a popular option for everyone in recent years. Whether it’s for freelancing, consulting, or entrepreneurship, you can now easily make money at home. Plus, you can work at flexible hours and don’t need to worry about getting stuck in a traffic jam.
However, although it’s a delight to work from home, there are things you should also prefer. One of these things is to get business insurance. Some might think it’s a waste of money, especially those with home insurance. Unfortunately, you still need to get one for your business.
In this article, we’ll discuss why you need to get insurance for your business.
1. Protecting Your Assets
Operating a business at home should be different from your situation. Besides, if you don’t have proper, separate insurance, you might lose your assets if things don’t go as planned with your business.
For instance, you may lose your home and other investments if you face lawsuits. So before anything happens, you should already have insurance for your business and a separate one for personal matters.
You can contact your insurance broker to discuss the things you need to accomplish and find the right business insurance.
2. Liability Coverage
One of the most essential components of business insurance is the liability coverage. If your home-based business causes any damage, injury, or other issues, you may file for claims.
For instance, if you offer consultations at home and one of your clients accidentally slips, your business insurance can cover the medical bills and legal costs. Aside from that, it covers a wider range, including intellectual property rights claims, and false advertising.
Most business insurance premiums already cover this part of the policy, so there’s no need to add it.
3. Business Equipment Coverage
Do you use computers, printers, and other gadgets for your home business? Getting business insurance also covers your business equipment in case it breaks down or gets damaged. On the other hand, business insurance is necessary for your money to be saved, especially since the cost of repairs and replacements can be too much.
Besides, it’s more likely that you need the repair or replacement right away, and if you’re going to pay it on your own, it might take a while before your business resumes. However, just to make sure, discuss this with your insurance broker first to confirm the policy that can cover everything you might need in the future.
4. Professional Liability Insurance
Are you offering services, such as designs, consultations, and marketing? Having business insurance can protect your home-based business from claims of errors, and other issues you may encounter moving forward. In addition, it can cover the legal costs associated with the issues you’re facing.
We sometimes make mistakes, but when you’re running a business, a single mistake can lead to a bigger problem. Fortunately, with the help of professional liability coverage, you can still redeem yourself and do better once the issue has been solved.
5. Income Protection
When running a business, there are instances when you need to pause the operation due to specific reasons. When that happens, you may lose your income. However, in business insurance, there’s usually income protection coverage where you can still obtain your regular income for a time, during the disruption of the business.
This can help cover your expenses while you’re sorting things out with your business.
6. Data Breach and Cyber Liability Insurance
Today, businesses are relying more on the digital world. Besides, the use of online apps, gadgets, and the internet can make tasks easier than before. Unfortunately, there are also disadvantages when storing essential information online. Some of these are cyberattacks and data breaches.
For instance, if you’re running an ecommerce business and accepts credit card payments online, hackers might get the personal information of your customers, along with their credit card number. When this happens, you might face multiple charges and complaints.
Fortunately, business insurance also covers cyber liability and data breaches. So if ever you encounter anything related to the abovementioned scenario, you can still be safe from paying for everything you lost.
7. Credibility
Did you know you can enhance your professional image when you have business insurance? Most of the time, clients and partners trust businesses with business insurance because they know they can demonstrate their commitment.
Of course, you can market your products and services the way you want to, but when it comes to making deals, having business insurance can go a long way.
Final Thoughts
Running a business at home can be one of the best things in life. However, just like any other business, it also has risks. If you want to prevent losing everything you worked hard for, one of the best things you can do is to apply for business insurance.
We hope this article helps you realise the importance of having insurance for your home-based business. If you want to discuss this further, you can leave a comment below!