Home based business opportunities are everywhere: There are 38 million home-based businesses in the U.S. and home-based companies are generating significant dollars — with total annual revenue of $427 billion per year. And 20 percent of home-based businesses make $100K-$500K per year. However 44% of home-based businesses have $5,000 or less in revenue.
If you own a home-based business, you want to be sure to put some sort of home-based business insurance in place. Do not make the mistake that many small business owners have made: do not assume that your homeowners insurance will cover your business claims.
Most homeowner’s policies do not cover business-related losses unless you have negotiated a rider with your insurer which changes that. Keep in mind, however, that a rider will only be effective if you have a very simple business, such as one which uses just a computer or a phone.
But if you are manufacturing products or doing repair work of some sorts it is likely that you will need something more substantial, such as specific commercial insurance. And, of course, unless you live and work in Texas, you may need workers compensation insurance.
Think for a moment about the risks a home-based business has: theft, natural disaster, damage or perceived damage to a client, and, of course an accident involving your vehicle. Most importantly without commercial/business insurance a home-based business owner it personally responsibility for attorney’s fee, court costs, and financial damages if a judgment are levied against them.
If you have a home-based business, you should contact a licensed commercial insurance professional as soon as possible. You will want to work with that professional to determine which insurances you need.
EMERGE INSURANCE AGENCY
Cecil Williams -
Emerge Insurance Agency
5991 Chester Avenue, Suite 103
Jacksonville, FL 32217