Does Your Home-Based Business Have the Right Insurance?In today’s society and especially now during the Pandemic, more and more people have set up shop in their own homes.  Operating your business from home certainly has its perks, but if an unfortunate situation or accident occurs, will you have adequate insurance protection for your business?  If you think your N.C. homeowners insurance policy provides necessary and adequate protection for your home-based business, you may need to think again.  Does your home-based business have the right insurance?

Imagine if This Happens at Your Home-Based Business

Imagine after being laid off from your job as a wood worker you decide to invest your entire savings in your own wood working business right there under your roof.  It sounds great in theory and your income has soared over the last year, until the unthinkable happens.  One of your regular customers came to pick up a custom-built credenza and in the process of loading it into his truck, hurt his back and collapsed.  The furniture fell on him and injured his knee that required emergency surgery and now you are faced with astronomical medical bills.  Will your home-based business have the right type of insurance protection to safeguard you and your assets or will you be faced with financial destruction as a result of this incident?

3 Key Questions to Consider

Before deciding to open a business out of your home, you need to do your homework.  Simply put, it’s recommended you review your N.C. homeowners insurance policy regarding specific exclusions pertaining to business operations and then discuss with your local N.C. independent insurance agent.  Keep in mind that your homeowners policy does give some protection for a home-based business, however, it is very limited. Below are some questions you should ask yourself when considering a home-based business and the insurance needed.

  1. Do you have business equipment at your home used for the sole purpose of business operations? If you have invested in business equipment at your home for the sole benefit of your business, then you know it isn’t cheap.  What if a fire ensues at your home and all of your equipment is destroyed only to find out that your N.C. homeowners insurance policy specifically excludes coverage for business equipment in your home used solely for business operations?  If you have business equipment in your home and you are using it for your home-based business, you need a separate insurance policy that will provide the needed business protection.
  2. Do you have customers coming onto your property to conduct business or do you primarily go to their homes/other locations? If you are operating a business at your house and you have customers coming and going, you need to be aware that your N.C. standard homeowners insurance policy excludes third party injury claims related to work.  Imagine having a customer come to sign some paperwork and when leaving, falls and breaks his/her arm.  Without the proper insurance protection, YOU will be faced with the medical bills along with a possible lawsuit.  If you have customers coming to your home, you need to contact your local N.C. independent insurance agent to discuss recommended business insurance options and solutions.
  3. Do you store clients’ business documents/financial records at your home? Your business is running smoothly out of your home until one day a burglar breaks in and steals all of your clients’ financial information such as credit card numbers, addresses, and other personal information.  You never purchased or inquired about any other insurance protection other than your standard homeowners policy and now you are told that business documents are generally excluded under your N.C. homeowners insurance.  Now each of your clients’ personal identification and credit card information is up for grabs, not to mention their identity.  Imagine what that may do to your business reputation!

Failing to have the right type of insurance protection may cost you your business and destroy your reputation, not to mention what it could do to your business assets.  Contact us TODAY at 828-464-2643 to discuss your insurance needs for your N.C. home-based business.  Protect your investment TODAY for what may happen tomorrow.