Having a home-based business is wonderful: you're never more than steps away from your work, you can work around your schedule and you have fewer expenses since you're not renting an office space. But many kitchen table entrepreneurs don't realize the vast difference between business insurance and their homeowners or renters insurance policy. Here are four things you must do to protect your home-based business.
Understand your coverage and limits. Many people don't clearly understand their homeowners or renters insurance and think that they have more coverage than in reality. Homeowners insurance may also exclude damage done to business-related items, which is why business insurance is a must, even when you work from home. A typical policy covers less than $3,000, but your computer and technology could easily surpass that.
Learn your state's laws. It's always good to be knowledgeable about the law, but it's very important when it comes to having employees who help you run the business. If you've got help, whether they are family members or not, you need to make sure you're in compliance with the laws in regards to offering insurance and compensation for them.
Plan for the worst. It's not a fun, uplifting activity but you always need to have a plan in place in the event of that a fire destroys your home, you're severely injured and cannot run the business, you and your business partner have a falling out or worst, you pass away and your partner is left to manage everything. Bad things do happen to good people; don't think you're "tempting fate" by considering worst case scenarios. Have plans and systems in place to handle these events in case they occur.
Separate business and personal assets. In addition to keeping your finances separate, you also should avoid mingling your possessions. If you're leasing a car for your business, you need to have the business named as principal insured or else when you end up in an accident, you're personally liable.
Running a business at home doesn't require you to dress up in a suit every day, but you do need to have adequate amounts of business insurance in place to protect your assets, employees, property and clients. You can opt for the specific types of coverage that are best suited to you, or opt for a business owner policy that gives you full protection.
Ensure the protection of your business. Call Americo Direct Insurance at (214) 374-9997 for more information on Arlington business insurance.