Home Based Business Insurance – Do I Need It?

Well, that all depends – If you have insurance, you probably won’t
use it. If you don’t have it, you’ll probably be sorry.
Insurance is just one of those necessary evils. Keep the
following points in mind when you consider whether or not you
need home based business insurance.

First, will you be obtaining a business license of any kind? If
so, you will need to check the licensing requirements. Some
local governments require that you maintain a certain level of
liability insurance especially if people will be coming to your
home during the course of your business. If your local
government doesn’t require home based business insurance, then
you must look at your individual situation and make that call.
You may want to consult a licensed insurance agent to advise you
of possible affordable options.

Will you keep an inventory in your home? In that case, you will
probably want to insure it against a potential loss. Most
homeowners’  insurance policies do not cover the loss of business
supplies so check with your local insurance agent to find out
the best option for your home based business insurance needs.

If you will use your car consistently in your business, you will
probably need to contact your auto insurance agent. Premiums
usually increase when you drive your car for regular business
use. One thing to keep in mind is that business use of a car is
often tax deductible so this can help defray the added home
based business insurance cost.

Many people run their businesses without any type of insurance -
sort of “under the table” if you will. This is probably fine if
you run a fairly small operation and don’t mind replacing any
materials that you lose. However, if you anticipate people
coming to your home or maintain a significant inventory,
wouldn’t you rather be safe than sorry? Starting a business is
hard enough without risking the loss of all of your hard work
because you didn’t invest in home based business insurance.