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In today’s day and age, thanks in large part to advancements in technology, more people are working from home than ever before. What many fail to realize, however, is that even those with work at home businesses should consider purchasing business insurance. Doing so can protect your assets in the event of an incident that causes injury or damages (physical or financial) to a third party. Still not convinced? Here are a few specific reasons why your home-based business needs insurance.

General Liability Insurance – Just because you work at home doesn’t mean you don’t entertain clients in your office just like any other business. The problem is, when you open your doors to customers you also open the door to potential lawsuits, even if it’s just someone dropping off a business delivery. If a third party is visiting your home office and becomes injured, you may be held responsible. Your homeowners insurance will not cover such a claim. Liability insurance, on the other hand, protects you and your business from financial damages.

Professional Liability – Working from home typically involves interacting with clientele of some type. What would happen if you failed to deliver an agreed upon product or service or found yourself in breach of a legally binding contract? What would happen if damages were incurred due to negligence on your part? Again, your homeowners insurance won’t apply in these scenarios. Professional liability insurance, however, will provide that added level of protection (not to mention peace of mind).

Product Liability – If your home-based business involves product sales, you may want to consider investing in what’s known as product liability coverage. This type of business insurance covers your company in the event that damages occur to a person (or to their property) that are directly caused by a product you designed, manufactured or supplied. Once again, as is the case with the other scenarios mentioned above, insurance that covers your home will not provide this type of protection.

Having the ability to work from home is a great privilege, but it also comes with great responsibility. To protect your business and your hard-earned assets from potential claims, investing in liability insurance is a wise decision. Sit down with your insurance agent to discuss what types of business insurance would be best suited to meet your specific needs.

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