Does my Home-Based Business Need Insurance?
From young entrepreneurs and single parents to retiring seniors, an increasing number of people are launching a home-based business. There are approximately 15 million enterprises in the U.S. that operate out of the home, but many owners don’t associate the need for insurance with their business. They typically view insurance as something that’s only necessary for a brick-and-mortar store location.
The short answer to the question is yes – a home-based business does need insurance. Home-based businesses should have general liability and property insurance at the very minimum. Don’t depend on homeowners insurance to cover any damage or losses experienced at a business operated from the home.
General liability will help pay for expenses resulting from a lawsuit if someone claims their property damage or injury was the result of something the business did or didn’t do. The average cost of a liability claim is about $15,000 and without insurance, the business owner is responsible for the entire expense out of their own pocket. It can also cover lost income should the business have to suspend operations due to a loss.
Business insurance protects the property and contents of the business whether it’s operated out of a specific room in the home or in a separate building on the property. It covers contents, equipment, the building, exterior fixtures and/or signage and surroundings.
It’s also a good idea to have cyber security insurance to protect against data breaches and other types of cybercrime that affects electronic data ranging from theft, corruption, damage and disruption. It’s absolutely essential if the business accepts online payments or has access to personally sensitive data. Home-based business owners should also consider errors and omissions insurance to protect them against claims of negligent actions or inadequate work.
Times have changed dramatically in the electronic age for home-based business owners. There are more threats and situations that business owners need to protect themselves against. It’s a good idea to sit down with an insurance agent and discuss the types of insurance that will best protect each type of business.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
