Are you planning to start a home based business or already have? Prior to launching your home based business, it is critical that you make sure you are properly insured. Many homeowners’ insurance carriers exclude and claims that have to do with a business being run out of a home. Home owners insurance covers your house as a “home”. You need to be very careful with this because depending on the type of business you open means that your home owners insurance could be invalidated. Filing a claim from your business to your home owners insurance could get you in a lot of trouble and there could even be charges of insurance fraud brought against you.
Home based business insurance is important because it protects your business activities along with all equipment owned or used by the business. To protect your home based business, you should, at the very least, acquire general liability insurance if you bring customers or clients into your home to avoid retaliation if they get injured or hurt in your home. Professional liability insurance should be considered if your business deals with consulting services or professional advice. Keep yourself, your home, and your business safe!