Eight everyday risks that could harm the success of your home-based business.
There's a lot that can go wrong over the course of a work day, and if you run your business out of your home it will not only affect your place of business but potentially also where you, and your family, live.
So what could go wrong exactly? Plenty, unfortunately, starting with your home insurance coverage.
1. Your home insurance may no longer be valid
You risk voiding your home insurance policy if you don't keep your home insurer in the loop about running a business out of your home. Your homeowner's insurance policy is meant to protect your home as a residence, not as a place of business, and when you combine the two-your home with your business-you may be jeopardizing your coverage. You'll want to give your home insurer a call and let them know that you work out of your home.
Once your home insurance provider is on board, it's time to turn your attention to your business; and it's here where you'll likely see how a home-based business insurance policy can help you, and your business, should something go wrong.
A home-based business insurance policy can be customized to ensure you're covered if:
2. A courier, or client, trips and falls
If you have clients, customers or even couriers regularly coming to your home for business reasons, you run the risk of someone taking a tumble. Whether it's due to a slippery sidewalk, uneven walkways, a wrinkle in your carpeting, or stairs without a handrail, you could be held liable if a someone trips, slips or falls at your home and is injured as a result.
3. You inadvertently cause damage while visiting a client or customer
If part of your business involves visiting the offices or homes of clients and customers, you could be sued to offset the costs to repair damages you may inadvertently cause. This would be especially important for businesses, for example, who offer cleaning or janitorial services, in-home catering, or interior design and home staging.
4. The wares you sell are faulty
From cupcakes to quilts to one-of-a-kind furniture to whatever product it is you've created and are selling, sometimes errors happen. If there's an incident or a "bad batch" that ends up harming someone you could be sued for damages.
5. You're the victim of theft
Look around and add up the value of the "stuff" you need to run your business. Whether it's tools, equipment, appliances, specialized machinery, a computer, laptop, phone, or samples and inventory chances are there's a lot that keeps your business on the move. Chances are it could attract thieves, too.
6. You're hacked
Technology has made it easier than ever to run a business from home, but it has also opened up your business to new risks. A home-based insurance policy like those available through Kanetix.ca from TruShield Insurance include some protections if your business is the victim of a cyber attack. For example, if a virus wipes out your computer and you need to hire someone to restore it, then you'll be able to submit a claim for the restoration expenses. Also covered, would be the costs to notify your clients if there has been a privacy breach and their private information has been compromised.
7. You make a mistake
Everyone makes mistakes, but some can be costly. If your home-based business involves providing professional advice you may need errors and omissions coverage, which can be bundled into your home-based insurance policy. A mistake that causes a client to lose money could be financially devastating to your business if it leads to a lawsuit.
8. You're unable to work out of your home
One of the perils of working out of the home, is that your home and your office are one in the same. If something catastrophic happens to your home, like fire or water damage, and you're unable to work out of the home, what would you do? Business interruption, which is typically included in a home-based business insurance policy, would cover your operating expenses and lost income while you set up shop elsewhere.
A lot can go wrong, so let's make it right with the right insurance coverage
There's more to a running a successful home-based business than a solid idea and hard work. There's also a sound business plan which should include home-based business insurance. Protect everything that you're working hard to achieve and compare home-based business insurance quotes today at Kanetix.ca.
- Related Read: Top 10 Myths of Running a Home-Based Business
- Related Read: Your Home Insurance Doesn't Cover Your Home-Based Business
- Related Read: Insurance Tips for Home-Based Startups