Does a home business need commercial insurance?

Home businesses are particularly popular right now. They account for almost half of all small businesses. Just because a business is home-based, it is not financially responsible to treat it less seriously than you would a business in a storefront. All the dangers that face any business are also faced by home businesses. Simply stated, yes a home business needs commercial insurance. At Foresee General Insurance Agency Inc. in Harrison, AR, we are an independent agency that strives to give our clients the choices and information they need to protect their business. 

Property insurance

Commercial property insurance offers different coverage from home insurance. Home property insurance will cover your physical home from a variety of perils. Content coverage protects your personal items in your home. With a home business, you may have a lot of other things related to your business that home insurance won’t cover. You may have office equipment, records, machinery, inventory, and raw materials. In order to cover what you need to do business, commercial property insurance is a must. 

Liability coverage

Liability at home is somewhat different from business liability. Home insurance covers a visitor who visits your home, but when someone visits for business, home insurance won’t cover them. You could be left holding the bag for medical expenses as well as a legal suit against you. It just isn’t worth the risk. With a commercial policy, you would have the amount of liability coverage you need. 

Business interruption coverage

Small home-based businesses are particularly vulnerable to business interruptions. When a business can’t operate because of a covered hazard, the bills don’t stop. You have no income coming in but probably have outstanding invoices for things you have previously purchased. Business interruption insurance may be the only thing between you and closing your business. It is not something that you can have without a commercial insurance policy. 

Contact Foresee General Insurance Agency Inc. in Harrison, AR to discuss your home business insurance needs.