3 Adjustments You May Need To Make To Your Insurance If You Start A Home Business
As you prepare to start a small business out of your home, you will need to think about the insurance coverage you will need to protect this new business. Depending on the type and nature of your new business, you might already have enough coverage under your regular home insurance policy; however, there is also a chance you may need to add some coverage. Here are three changes you may need to make to ensure that your new business is fully covered.
Increase in asset coverage
The very first thing you should look into is coverage for your business assets. If your new business will not have any assets of value you might be able to skip this; but, if your business has a lot of assets or inventory, you may need to bump up our coverage or add a rider to your policy for extra asset coverage.
Increase in liability coverage
The second thing to think about is liability coverage, and this is vital if you expect to have clients or customers at your home for business purposes. If anyone comes to your home to conduct business, they can sue you if they get hurt at your home. For example, if a client comes for a meeting and slips on the icy sidewalk at your home, he or she could sue you personally for damages. The only way to protect yourself is to make sure your home insurance policy has enough liability coverage.
Add cyber liability and data breach coverage
The third type of insurance coverage you may need to add to your current policy is designed to protect against data breach issues, and this primarily involves leaks of information that occur online. If your business will have access to confidential, sensitive information, you will need to make sure you add insurance coverage for data breaches to your policy.
This type of insurance will protect you if any information leaks out, or if any hacker somehow accesses the information you have stored on your computer. If this occurs, your insurance company will pay for the damages associated with the leakage of the information.
Running a home-based business can be a great way to earn a living, but it will require having the right types of insurance coverage. If you would like to learn more about insuring your new home business, you should contact a local insurance company, such as Germain Insurance Agency, to set up an appointment to discuss your needs.