Home Based Business Insurance

Who says 'work from home' income need not be insured? Needless to say, income of any kind needs to be insured!
| Monday, August 16, 2010
Home based business has lot of benefits like: no time wastage in traveling, less mental stress, quality time is available to spend with the family etc. under the comfort of working from home, what we tend to forget is that business is ultimately a business and it needs to be insured. But another fact is that home based businesses are not safe without a proper insurance policy. There is a misconception among most of the people that home insurance also covers the business. One needs to go for a separate insurance policy for his business. Other than this the insurance cover for a vehicle owned or rented does not cover vehicles that are used for business reasons.

Insurances for businesses running from home also have certain rules and regulations. They might be sometimes objectionable from the point of view of the society where it exist. It becomes mandatory for the individual to first and foremost discuss the details of the business with an insurance policy agent or representative. These officials help by making suggestions which would be required to be implemented for the smooth functioning of the business. The information on evaluating ones business is available through various sources, including the internet. 

It is important to evaluate the minutest detail about the business since this can help the insurance official to design a policy that’s covers each and every entity in the business.

The details that need to be discussed with the insurance official are as follows:

  • The kind of product or service offered by the business
  • Any other property that would be associated with the business.
  • Is the business going to allow client visit?
  • Any vehicle will be used for commuting from the business venue to where the prospect is located?
  • Use of water and electricity during business hours.

Home Based Business Insurance Coverage

  • Property insurance covers all those assets at home that are used in the business, e.g. the computer, the printer, the fax machine, tables, desks or chairs etc. these are unfortunately not covered under the home insurance. Replacement cost coverage is preferred more than Actual cash value coverage by business men because the later is not affordable during a highly ruinous mishap.
  • Liability insurance covers the damage caused to another person or his property. The claim due to an injury caused to an outsider because of a mishap, will be covered by liability insurance and not home insurance.
  • Business Vehicle insurance will cover damage to the automobile caused due to an accident while making deliveries, collecting commodities or during pick and drop facilities for a client. The personal vehicle policy will not cover the same.
  • Workers’ coverage insures the individuals who are employed in the business to carry out certain job functions. They may be Office Assistants, House keepers, Delivery boys or even the Driver.

Customized Home Based Business Insurance plans are available that at a time cover both, the office as well the business at home. One needs to make a thorough study of the various combinations available and then make the best choice. There needs to be a proper comparison made between the premiums and benefits of the individual policies the ones available in combinations. Home Based Business Insurance plans follow the same laws as that of any other normal business.

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