Operating a business out of your home is quickly becoming commonplace today. It’s a cost-effective way to open a small business, and people from many different industries are using part of their home as their office. Everyone from marketers, insurance professionals, real estate agents, home contractors, and health and wellness professionals have realized the value and benefits of setting up a home-based business.
However, one commonly overlooked aspect of running a business out of your home is your insurance needs. It’s estimated that
close to 40% of Canadians who operate a home-based business do not have business insurance coverage. Without the proper commercial insurance coverage, you could be exposing yourself to unnecessary risk and liability.
What if someone were to slip and fall on your property? What if you are sued by one of your clients?
Your home insurance policy will NOT provide you with the coverage you need for your home-based business.
According the
Insurance Bureau of Canada:
“A home insurance policy offers a small coverage limit for books, tools and instruments necessary for a business, profession or occupation. As such, if you operate a business from your home, you should inform your insurance representative and obtain additional coverage to mitigate the risk of a potential loss. Review your policy, speak with your insurance representative and be aware that limits on a home insurance policy may not be adequate for all of the equipment used by your business.”
Why You Need Commercial Insurance for Your Home-based Business
Having the proper insurance coverage will give you peace of mind in knowing that you are covered should the mailman slip and fall delivering a business package, someone steals your business equipment or damage is caused to your property as a result of business operations.
Your best option is to choose a policy that includes general liability and commercial property insurance. What it covers and how much coverage you will receive is specifically designed for home-based business owners.
Remember, when operating a business out of your home, you have two separate entities to protect – your home and your business, and your home insurance policy won’t effectively serve both.
Types of Business Insurance to Consider
Every business is different; therefore, you may or may not require the following coverage options based on your business:
· Business property
· Product liability
· General liability
· Errors and omissions
A
business insurance broker in Toronto is a great resource to help you assess your commercial insurance needs. I can help you identify and prevent potential risks and loss.
To learn more about your business insurance options,
contact me directly. Get a no obligation
business insurance quote today!
Learn More About Business Insurance Brokers and Coverage Options
The Broker Advantage: Why Working with a Broker Makes Sense for Small Businesses in Toronto
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Business Insurance Coverage: 4 Tips to Find the Right Coverage