More people are building businesses from the comfort of their own homes than ever before, and yet there are a plethora of problems and obstacles that come with being your own boss that can seem intimidating to budding domestic entrepreneurs.
Insurance is one of the big sticking points, as you may find that your standard policy does not provide adequate cover in this context. So what kind of package do you need to run a successful business at home without taking unnecessary risks?
Consider equipment & inventory costs
This is perhaps the most important aspect to consider when calculating whether you need to upgrade your existing home insurance. If your work involves the use of equipment or the storage of inventory that exceeds your contents cover, then it is worth migrating to a more robust policy.
For example, you may need costly computer hardware to do your job, or to keep product samples to send out to prospective customers. Very small start-ups may find that the home insurance they have at the moment is suitable, but as your enterprise grows, changing policy may be necessary.
While you can seek the assistance of an insurance agent to achieve this, according to Policy Scout it is also possible to get a good deal by comparing insurance products online, cutting out the middleman.
Investigate liability protection
In every home, accidents can happen, which is why liability protection is typically factored into any standard package. However, there will be limitations to what this will cover, and any activities which are directly related to your business will probably fall outside of its remit.
Again, the size and nature of your business will determine whether shifting policies is necessary. If you regularly have customers and clients visit your premises, then getting a business insurance policy for the added protection it affords will certainly be sensible.
Scrutinize other aspects of business insurance
Insuring your home business with a separate policy from your home insurance is a good move if there are other elements of your lifestyle and circumstances which will have a bearing on the viability of this enterprise.
One area to keep in mind is the role that the income you earn from your business plays in sustaining you and the rest of your household. If you are the main breadwinner, getting cover to protect you in the event of an incident which prevents you from working, so that your bills will still be paid and other living costs encompassed, is essential, for example.
Furthermore there may be other elements which have to be included in your decision-making. Ensuring that your business has all the correct licenses and permits, for example, will not only keep you out of hot water with regulators, but also ensure that if you do need to make a claim, your insurer will be willing to pay out.
Ultimately your need for specialized insurance when running a business at home is something you need to decide for yourself, and if you have any doubts, getting expert assistance is worthwhile.