Home Business Insurance and Type

Home Based Businesses are generally profitable as they are low cost and enjoy a lot of other advantages. But, operating a business from home without business insurance can prove to be a really risky affair. Many Home Based business owners, who own their homes, think their Home Insurance will also cover their Home Business Activities. But this is totally wrong. Moreover, if the insurance company is not aware that the home is being used for some business activities, then they may invalidate the home insurance and in case of any accident they may refuse to give the coverage. So, it is extremely important to insure the Home Business. Home Business Insurance is nothing but ensuring every kind of Insurance Coverage for everything associated with the Home Business. This Home Business Insurance can be designed specially considering the specific needs of a particular home business without affecting the Home Insurance Policy.

Home Business Insurance should be such that it covers:Equipment-This includes all the equipments like computers, printers, fax machines, telephones etc. which are required for carrying out business activities.

Workers Compensation-If the Home Business has employees, then buying Employers liability and compensation insurance is required by law.

Inventory-This means the stock of that product which the home business sells and also the stock of the materials, which are used to make the product.

Vehicles-Any vehicle, which is used for business purposes, is required to be insured.Liability-This includes product liability, professional liability, error or omission coverage, completed operations coverage,

Types of Home Business Insurance

• Product liability Insurance is the insurance, which protects the Home Business from liability arising out of nonperformance of any product.
• Professional Liability Insurance is essential for the home businesses, which are engaged in rendering services. This type of business provides coverage both to the business owners and the clients.
• Insurance for the property including equipments and inventories is also very much important to protect the overall property of the business.
• Vehicle Insurance is also important because it not only covers any damage to business owner’s vehicle but also covers the business owner’s liability to others if the vehicle is involved in an accident.
• Errors and Omission Insurance is generally made by the home businesses who are involved in giving professional advices. If any client complains that he has suffered from loss due to the consultancy given by the small business as the service provided was incomplete and inadequate, then this errors and Omission Insurance covers the liability and the client is compensated for the damage caused to him.
• Completed Operations Insurance is the insurance taken by the businessmen who render services at the client sites. If after completion of the operation and after leaving the premises of the client, any damage occurs which is anyhow linked to the completed operation, then the liability of the damage is covered by this Completed Operations Insurance.
• Business Interruption Insurance is the one, which covers the lost revenue of the Home Business if the business is suddenly stopped because of fire or flood, or any other disaster.

There are some Insurance policies, which are actually combination policies specially made for the home businesses. They are the following:Business Owners Policy

This is a combination policy, which includes property damage coverage, product liability coverage and professional liability coverage.Home Office Policy

This is the insurance, which combines the coverage like business liability, lost revenue and payroll expenses. Others things that are covered under this policy are loss of records, off-site business property, personal liability, theft and fire.The owners of the home businesses can go for these combination policies as these policies save money compared to the separate policies. But these combination policies do not cover all possible insurances. So, if a home Business Owner wants to opt for every kind of policy he has to take the separate ones.