When you are in the process of getting your business up and running, if you are like a lot of small business owners, it is only logical financially to start at home. In a survey conducted in 2012, about 69 percent of businesses actually start in the home, and around 59 percent of those same businesses that start in the home are still operating there as long as three and a half years later. Don’t make the mistake of assuming your homeowner’s insurance will suffice for the needs of coverage for your business. Here are four signs that tell you it is time to invest in a good business insurance policy.
You frequently have business contacts or customers visit your home.
If you have a steady flow of clients and customers who stop by to have meetings with you, shop with you, or just check in for other relative business inquiries, it is a good sign that you should hold business insurance. While your homeowner’s insurance will likely cover traditional guests if they get hurt on your property, if someone visits you for business that is operated in your home, the insurance company will not likely cover the costs. It is crucial to have some form of liability protection in place with an insurance provider just in case someone inadvertently gets hurt on your property.
You have business data and files stored in your home.
Even though your business information may seem safe and secure at home, it is just as vulnerable there as anywhere else and in some cases, even more so. A security breach where data is concerned can cost you a lot of money and be a major compromise to your business. If you have a business insurance policy, you can pick up coverage that will help keep you going in instances of data security attacks.
Your home insurance will not protect your business equipment.
Whether it is the electronic equipment you have in your home office or the portable sawmill you keep parked out back, these are all examples of items that may not be protected under your house insurance policy if they are used for business purposes. From the moment you start your business venture at home, you should check with your current carrier. Some companies will actually consider it a violation of their terms if you operate a business out of your home without letting them know.