You may think that just because your business is something like selling makeup as a representative or leggings from a major MLM company, that you don’t need the proper insurance. Those who enter the world of becoming their own boss at home don’t think about insurance often because they don’t have their own storefront. This couldn’t be further from the right thing!
A Homeowner’s Policy Just Won’t Cut It
Sure, homeowner’s insurance is great, but it may not cover what happens to your inventory if something happens in your home. Any type of business activity that’s present is not covered by your general homeowner’s insurance went something goes awry. Depending on where you get your insurance and their laws/constrictions, you typically can’t sell more than $2000 worth of product without being considered an at-home business.
Even if you’re sending out baked goods and make over that amount, or having a yard sale, you’ll can easily go over this number. With that being said, your regular insurance policy isn’t giving you any liability for your at-home business. You may be asking yourself, “what if my business is very part-time? Do I still need a separate policy?” The truth is, if you have some sort of inventory, and it’s under the $2000, you’ll want to invest in the right policy that gives you coverage on and off your property.
You may be able to add a few helpful things onto your current homeowner’s policy, but it won’t be enough to those who run solely out of their home. It may work for those that are super part-time, but if your primary income is made from in-house transactions, then you’ll most definitely want to find a policy catered to you.
Replacing Lost Income
When you have broad coverage, even small instances like a box of product getting ruined from your toilet overflowing can mean you have some sort of reimbursement to replace that missing from your product list. Depending on the policy purchased, you may also have income coverage for if you do lose some product, and are unable to make up for the lost income. A regular homeowner’s insurance policy won’t give you that.
How to tell if you need home-based insurance:
- Do you have clients that visit you at home your business? You may be in dire need of a tailored policy for your business.
- If you store customer data at home on a secure computer or server, you’ll want insurance to protect yourself in case of a hack.
- Is your at-home business your primary source of income? You’ll want to talk with a local agent today to get yourself setup with a doable policy.
Getting yourself an insurance policy that is catered to your at-home business means that you’ll have the most economical option in the long run. While payments may see useless now, it only takes one sewer screw up, or one little spark to ruin it all. Those payments will be worth it in the end.
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