Home-based business insurance depends on the kind of home-based activity you are engaged in. It is important to remember that, home business is just like a normal business. It needs to be insured like any other business.
Focusing on the type of your home business, you must know what types of coverages are needed for your home business. Renter’s and homeowner’s policies do not cover home business insurance. For example, if a fire occurs and your home office is destroyed, then the equipments like computer, fax machine, furniture and printer would not be covered under your home owner’s policy. You need a business property insurance to provide this coverage.
If any business visitor visits the house, and if he had an unexpected injury or lost their content then you need to have liability insurance, which protects the business when it is liable for damages caused to a third person or his property. This type of business insurance is necessary for home based business.
Generally, homeowner’s insurance policies limit your business property coverage to some amount on the premises and to some amount off the premises of your home. Your home owner’s policy may not have the coverage if you lose or damage your laptop while away from home, which can be attained by the home-based business insurance.
If you produce and supply something, consult with your insurance professional on the need for the product based liability insurance. If you have employees or workers, you will need workers’ compensation coverage. Moreover, employment laws must also be followed. Finally after knowing about these coverages, check with your insurance agent to find out what home-based business insurance options will offer you the best protection.