What’s a boss’ first move when they launch a startup? The answer is to protect it and keep it safe. As soon as it’s in trouble, the foundations will crumble and the company may not exist any more. For most entrepreneurs, this means taking action against competitors and lawsuits, but you’re different. As a home-based firm, the biggest risk you face is insurance. Unfortunately, applying for and securing a policy isn’t the end of the road – it’s only the beginning. To make sure you don’t fall at the first hurdle, here are the things you should know about insurance and your home-based company.
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[ctt template=”4″ link=”ZDjYc” via=”yes” ]As a home-based firm, the biggest risk you face is insurance. Here are the things you should know about insurance and your home-based company.[/ctt]
4 Things You Didn’t Know About Insurance And Your Home-Based Business
Homeowner Coverage Doesn’t Apply
It may apply to some things, but the majority of your assets won’t fall under the protection of the policy. This is dangerous because anything can happen, whether it’s a break in or something is lost or broken. Without an insurer to pick up the check, the money will come out of your pocket and take a chunk out of your budget. On top of the wasted premiums you’ve already paid for, this will come to a significant sum of cash. Always separate your business assets from your home ones and file for a new policy or merge into one comprehensive plan. Never leave it to the lap of the Gods.
You’re Liable For The Premises
Like any other company, anyone walks through the front door on official business is afforded protection by the law. That means they can assume their health and safety won’t be at risk during the visit. And, this can refer to anything from a trip or a fall to a dog bite. For more, go to the Hupy and Abraham website and learn about the differences. The relevant thing to take from this is that you need to ensure there is nothing hazardous on display. From loose wires to wet floors, be sure they’re tucked away or there is adequate signage.
And For Things That Happen Off Them Too
This may come as a shock but it’s the same for 99% of companies. If you were negligent and it isn’t apparent straight away, the side-effects may occur off the premises. For example, a food or drink company with a defective product. Once people’s health is brought into question, you can (and most likely will) be held liable. So, your coverage should extend beyond your front door in case there is an issue with the products or services.
Usually, SME owners assume they can’t get the same coverage as a big corporation because of their size. In reality, this isn’t true as lots of the same policies are available as long as you hit certain criteria. By the way, they aren’t impossible targets. With that in mind, you should ask about specific policies that may be beneficial. Some insurers have accounts receivable coverage which is a huge bonus as it protects your stock.
As well as the above, always consider policies for rental agreements as well those for data leaks.
This is a contributed post.
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