Running a business from your home has a lot of great benefits. As a start, you don’t need to worry about spending a lot of overhead on renting a space. In addition, there’s the enjoyment of not having to deal with that early-morning commute. However, working from home also exposes you to legal liability, the type that your traditional business owner doesn’t have to deal with. In addition, there is the chance that damage to your equipment or documents may not be covered by homeowner’s insurance. This is why it’s important to make sure that you understand your legal obligations and protect yourself with some form of business insurance.
An important step is to make sure that you find Insurance Attorneys in Miami so that you have all the coverage you need. They can help guide you to the coverage that makes the most sense based on your operation and your needs. However, with this said, what types of coverage are available for you and your home business? Most people narrow it down to three main options, which are as follows:
An in-home business policy: This mainly applies to people who have a small business that they run out of their home. Generally, this will cover issues like injury and theft for up to 3 employees. The good news about this type of coverage is that it is relatively affordable, costing up to $500 per year while covering up to $10,000 in losses. The drawback is that this doesn’t cover errors and omissions insurance, which you may need if a client sues you for negligence or something similar down the line.
Business owner’s policy: This is the largest of the three options and is suited for anyone who may need more than $10,000 worth of coverage, whether it’s due to the type of equipment they work with or just the nature of their business. Things that are generally covered by this policy include loss or damage to any business assets, equipment, and documents. Also included are a liability for any injuries or loss of income in the event of issues like power outages.
In-home rider policy: In general, this is best suited for the person who runs a solo operation out of their home, literally being an addition or “rider” to their regular home insurance policy, if they have one. This generally provides $2,500 to $5,000 worth of coverage and is extremely inexpensive. Just make sure you understand the different areas where your home coverage ends and where your business coverage will begin.
As a final note, it’s important to mention that even when your home business has all the coverage it needs, there may be outside issues that result in you getting underpaid by your insurance company. Hopefully, this isn’t the case for you, but you need to be ready to react with legal recourse to make sure you get all the money you deserve.