INSURANCE AGENCY NETWORK Blog
Starting your own business is no joke and there a lot of planning to be done. A common mistake that business owners make is to overlook how having a business at home can affect their current homeowner’s policy. In fact, it can cause problems and have a great impact on your possible coverage.
Here are the top three insurance gaps that you need to take note of.
1. Make sure your coverage includes liability risks.
Home businesses expose you to a lot of liability risks. If you have your inventory delivered at your house and an accident happens with the delivery guy, you may find yourself liable for his medical bills.
In this kind of situation, your current home or umbrella insurance policy may have you covered. However, having a home-based business will keep you at home most of the time which means there is a greater chance of facing multiple risks. In this case, it’s better for you to take a look at your current insurance policy with your agent and have it updated to cover you in a business-related setting.
2. Check if your policy will cover your home office.
Having a good working environment can directly affect your productivity. If you want to have some minor renovations at home to fit your home office, you need to know that it can affect your existing homeowner’s policy.
Home renovations can affect the costs of reconstruction in the event of wreckage. Since your policy only covers the old house construction, you need to make sure that you update your coverage to include the renovations that you’ve made for your home office.
If you fail to update your coverage limits, you might find yourself in a situation where you have to shell out a lot of money to rebuild your home in case of a disaster. Remember, prevention is key to protecting yourself from unexpected expenditures.
3. Ensure that your family and staff are protected by checking your Life insurance.
Studies say that over 50 percent of private businesses have their employees covered with life insurance. This means that employees have the benefit of having life insurance as they work for a company. That being said, starting your own business and leaving the company means that you can no longer rely on the life insurance policy that they offer. Moreover, as a home business owner, this responsibility is now in your hands.
If you are going to run your business on your own, talk to your insurance agent to check your existing life insurance plan to have peace of mind that your coverage suits your needs. On the other hand, if you plan to have employees you should also check with your agent on ways to have them covered as well.
Leaving your company and making a major life decision such as starting your own business directly affects your insurance plan. It’s wise to always check if you are protected the way that you want to be. At Insurance of the West, we take pride in making sure insurance shoppers are well protected at prices they can afford. To learn more about how we can help you please use this link to locate an agency near you or Click Here to request a free quote.