A fire destroys the storage unit where you keep most of your inventory. Or, a client slips and hurts themselves outside your home, where you run your business. Does your homeowner’s insurance cover the costs?
Many times, the answer to this question is no. According to Allstate, most homeowners insurance policies cover very few business income, liability, and property losses. Basically, if a loss has anything to do with the running of your business, it most likely is not covered by your homeowner’s insurance.
Make sure your business is protected! If you don’t have much in the way of inventory, don’t typically have clients visit, and have no employees, you should be able to get away with a rider to protect yourself against personal injury liability and the value of your business equipment. If you actually manufacture products, have an inventory, employees, you should seriously consider a business owner’s insurance policy. If you do a lot of driving for your business, you should also consider an business automobile policy.
Your business is your livelihood. eBay’s for Business Blog recently shared a great story highlighting the pitfalls of not properly insuring your business and how to determine the type of protection you need. “Business Insurance: Why You Need It And How To Get It” is a must read!