Small Home Based Business Insurance- Is it Needed?

by J.Crawford on February 10, 2011

Home based small businesses are probably one of the fastest growing business segments thanks in large part to the Internet and a host of other economic conditions that make them more favorable. Is small home based business insurance really needed to protect yourself , your property and your assets?

I’ve always worked with the philosophy that there is a time for everything.  I think too many first time entrepreneurs get bogged down in details and many times end up getting a lot of  “requirements” in place before they even know if there small business is even worth insuring.  Let’s face it, most small businesses don’t even get off the ground and one of the main reasons is the expense burden that many first time entrepreneurs try to bear right of the bat.

Advice on Small Home Based Business Insurance

Here is what I’ve learned by starting and running several businesses both online and off:

Let your business prove itself.  Work with your business and how it functions, what it offers, and take care of your clients.  If the business shows promise then look at  insuring your small business.  Many home based business ideas will be covered under existing policies and insurance requirements my be non-existant for some small home businesses.

Talk to your insurance agent about the business your starting.  Let them know your concerned with making it a success and ask them if insurance is really needed especially during the first 6 months to 1 year.  Ask your agent if you can expand and existing policy to cover any liabilities that you new business may expose you too.

{ 2 comments… read them below or add one }

dennis June 28, 2011 at 7:15 pm

if you have a home based business you need to have Insurance. Shop for the best low cost option.

Mark April 24, 2011 at 8:12 pm

Existing home insurance policies do not cover business liability or property. Your biggest exposure is your business liability. Not a desktop computer and some office supplies. ( some will cover computers.) Home insurance does not cover any liability to do with your business. ( I am a property & casualty insurance agent.) Most home based business policies can be had for $250-350/yr.

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