Do home-based businesses need commercial insurance?

Home-based businesses are an excellent option for people who want a little more flexibility and don’t want to have to rent an office or business space. But, as convenient as it is, it needs to be treated like it is a real business, not just a hobby. That means thinking about what kind of commercial insurance you need. At Marla Williams Agency in Kansas, we are here to provide the guidance you need to choose the right coverage for your home-based business. 

You may think that your home insurance is adequate to cover your home business, but that is not correct. There are several areas where your business will be lacking with home insurance. 

Benefits of commercial insurance for home-based businesses

Property insurance

Home property insurance is made to protect the building, but content insurance is different insurance. Your business content will for the most part, not be covered by home property insurance. With commercial property insurance, your business records, your office equipment, your inventory, raw materials, and tools will all be protected from something bad that happens. 

Liability coverage

Liability insurance protects you from legal action against you. If you have clients or customers coming to your home to do business, your home insurance will not protect you if they are injured and decide to sue. Customers can also sue because they are dissatisfied with the service you have provided and again, home insurance liability would not cover you for that. 

Business interruption insurance

If your home is damaged by a covered peril, your home insurance will repair your home, but what about your business? How will you be able to do business and where will you do business?  Home insurance will not provide you with any income to keep your bills and payroll paid, but business interruption insurance will. 

Contact Marla Williams Agency in Kansas for help with your commercial insurance.