Does my home-based business need commercial insurance?

If you own a home-based business, then you know how easy it is to mix your home and business life.  When your home shares office space with your business, it’s next to impossible not to.  Too often, however, business owners assume that they can use their home owner’s insurance policy to cover their business.

In fact, this is one of the most dangerous things you can do.  Many homeowner’s policies specifically exclude inventory and equipment used in a home-based business, and trying to make a claim on these items can invalidate your policy.  That means that in the event of a disaster, your business has no protection.

Similarly, it can invalidate a personal car insurance policy if the insurance company discovers that the car is being used for business purposes.  While one or two business errands is usually acceptable, a car that is primarily used for a business needs to have a separate insurance policy.

Fortunately, it’s possible to cover your home-based business with separate insurance that won’t break the bank.  These policies are written so that they are tailored to each business that they cover.  That means you won’t pay for coverage that you don’t need.  An insurance agent will review your business and identify needs that you have, such as insurance for a loss of inventory or a policy that can provide funds to make up for the loss of income after a disaster.

When you decide it’s time to buy a commercial insurance policy, call the agents at THINK Insurance & Financial Services.  They can help you find a policy that will protect your growing business while not breaking your budget.