Running a business from home provides a variety of benefits, particularly when it comes to the costs and expenses that are associated with the company. Unfortunately, a home-based business does not necessarily mean that you can overlook liability coverage on your business insurance policy. Liability protection is not based on the location of your company, but on the nature of your products or services.

Evaluating Risks

The risks associated with your business are the key factor to determining how much liability protection you need to purchase on a business insurance plan. For example, if your business sells a beauty product online, then you may need to consider the risk of allergic reactions or accidents associated with those products. Liability protection will help ensure that you are not paying for those medical bills personally.

Since risks can vary based on the type of business that you are running, the amount of protection that you need to purchase can depend on several factors.

Accidents on the Property

Even though accidents on your property is usually covered by any insurance that you may have on the property, read your policy thoroughly before you assume that you do not need liability coverage for the possible injuries that may take place in your home.

Some insurers may have limitations or exceptions on the policy that prevent you from making a claim on your property protection. A liability policy may still be necessary if your clients come to your home.

Home-based businesses may offer some benefits, but they do not necessarily limit the insurance that you need. It may still be necessary to purchase coverage for liability concerns. Contact us to speak to an agent for more details about the coverage options that are available for your company.