Home-Based Business? Home Insurance Isn’t Enough

Starting and growing a small business might be your passion project, but running it from home can be a lot to handle — especially when you consider the additional risks. And consider this — a home insurance policy may not be enough to protect your business assets. For example, your policy likely won’t cover any business equipment that gets damaged at your home, or inventory that gets stolen. It also won’t cover the legal costs associated with customer slip-and-fall accidents that could happen at your home.
While home-based businesses have unique risks that demand proper protection, TruShield home-based business insurance coverage can help protect you from a wide range of small business risks, including:

Damaged or Stolen Inventory

If your home-based business sells any type of product, you’ll likely store inventory onsite in your home. If a flood or fire damages your inventory, or you’re the victim of theft, your business inventory may not be covered by your home insurance policy. Commercial property insurance helps cover replacement costs for your inventory, plus repair costs for your property.

Damaged Business Equipment

Most home insurance policies don’t provide coverage if electrical, mechanical, or other specialized equipment needed to run your home-based business is damaged or breaks down accidentally. Commercial property insurance helps cover costs from damage caused by external sources such as fire. Equipment breakdown insurance may help cover the cost of repairs if your equipment accidentally breaks down due to internal sources or damages.
And if you have to temporarily close your business due to excessive equipment damage, business interruption insurance can help you recover lost net income and cover ongoing business expenses until you open your business again.

Injured Customers or Visitors

Liability is a top risk for home-based businesses, so having commercial general liability (CGL) coverage in your home-based business insurance policy is essential. If customers or visitors come to your house for business purposes, a lawsuit could result from a slip-and-fall injury at your home or damage to a visitor’s property, such as their car. CGL insurance is designed to protect you and your small business from a loss if you’re found legally liable for bodily injuries or property damage to a third party.
CGL insurance is also important if you plan to showcase your business at trade shows or similar events. When a venue hosts a trade show, the organizers typically require proof of insurance before letting you set up a booth. This is to ensure that if you accidentally damage the venue, your insurance will cover the repair costs.

Mistakes in Your Work

Do you consult, design, or provide any type of service to clients from your home? Professional liability coverage can help protect your small business if a client files a lawsuit should they suffer a financial loss that resulted from your wrongful act. IE: If you don’t deliver a completed project by an agreed upon date or time, or your client believes the professional services they received failed to meet expectations, and either resulted in your client suffering a financial loss, this coverage can help cover your costs. If you provide any type of professional service for a fee, having professional liability coverage built into your home-based business insurance policy may help protect your business from costs associated with these types of lawsuits.

How TruShield Can Help

Clients of Small Business BC, we know that while home is a safe haven for most, owners of home-based businesses must be extra cautious about additional risks. TruShield offers three competitive, home-based business insurance packages to meet your needs. From as little as $42 per month, you get property protection, liability coverage, and access to value-added services like Legal Assist and Trauma Assist at no additional cost.
To learn more, visit www.TruShield.ca/SBBC or speak with a TruShield Advisor: 1.844.429.9485.

Find Out More

No matter what stage of business, or what problem you face, Small Business BC offers a range of seminars and one-on-one advisory sessions to suit any business.

View More Articles