When you’re thinking of starting your own business, it’s easy to get lost in the details. What will I call my online shop? Who will design my logo? Where can I find the perfect cookie-cutter for dog biscuits shaped like hamburgers? While business insurance might not be the most exciting thing to think about when you’re picturing yourself as the next big winner on Dragons’ Den, it’s an important one. Here are the top five things you need to know about insuring your home-based business:
Your insurance company always needs to know about your new home-based business before you launch it.
While you might not see how selling mittens made from recycled sweaters could possibly result in an insurance claim, your insurer knows just how important it is to be covered when the unexpected happens. Not telling your broker about your home-based business (whether you make $50 or $5,000) could get you in trouble for failing to disclose an important fact that could have an impact on your insurance. So, before you launch your new home-based business, reach out to your insurance broker and find out what kind of coverage is needed for the type of home-based business you’re hoping to launch.
You may be able to add home-based business coverage to your existing home insurance policy instead of buying a separate business policy.
Depending on the type of business you plan to launch, you might be able to add a home-based business endorsement to your home insurance policy. Be sure to ask your broker if you qualify for this endorsement before you go shopping for a separate business policy.