Home businesses and commercial insurance: Why you need it

Having a home business makes a lot of sense. You don’t need to rent or own office or business space, you already have space. That is very cost-effective. While you are economizing you may think you can get away with the insurance you already have to cover your business as well. That is not the best idea; you may find the coverage is inadequate or nonexistent. In Coldwater, OH, Preferred Insurance Center has the information you need to make the correct decisions about your home/business insurance coverage. 

Your home insurance is designed to protect your home; it is not designed for business protection. While the area of your home that houses your business may come under the property coverage, your business property like office equipment and supplies, raw materials, and any inventory or raw materials may not be covered. You need to talk to your carrier and inform them that you are running a business out of your home. 

If your business owns a vehicle, it should be covered by a commercial auto policy. Keeping your personal and business lives separate is a very good idea. You should talk to your carrier; many will not cover the business use of a personal vehicle. This could leave you holding the bag in the event of an accident while you are on business.  

Liability insurance for your business is imperative. If someone is injured while visiting your home on business, your home insurance may refuse to pay. Liability will also protect you from legal actions having to do with the services you provide. 

If you employ even one person, in Ohio you are required to have worker’s compensation insurance or be granted the right to self-insure. 

Preferred Insurance Center in Coldwater, OH is here for you when you are ready to discuss your home business insurance needs.