The simple questions you should ask when running a home-based business

It is not a new concept to operate a business out of one's home. Not only can it save on the costs of buying or renting a building, some entrepreneurs find it convenient to have all amenities in one location. According to the Small Business Administration, 53 percent of all small businesses located in the U.S. are home-based.

However, what do you need to do as an owner to guarantee that your company is properly insured?

A contribution piece in The Dyersville Commercial, an Iowa news source, highlighted some key issues that small and medium-sized business owners need to keep in mind when they operate out of their homes.

For example, there are endorsements, which are provisions that are added to an insurance policy and either enhance or restrict what it covers.

"Adding a simple endorsement can increase coverage for business equipment, such as computers," the article explained. "You'll also want to look into buying a homeowner's liability endorsement - available in most states - to cover on-site injuries to customers or delivery people. A liability endorsement is usually available to in-home operations with few business-related visitors."

It is also important to ask yourself if there are going to be multiple locations. A comprehensive business owner's policy can account for various shops, and can have more coverage than a policy that only accounts for the main building - an owner's home. While this blog has previously explained how homeowner's insurance should not be considered the same as a business policy, it is always necessary to go over the details of an operation.

More than one shop location could also affect whether you need a commercial auto insurance policy. Again, personal car insurance is not the same as coverage that accounts for business needs. Whether you are making deliveries or simply transporting items back and forth, it is well-advised to work with commercial insurance specialists to find the necessary policy.

 

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