Home-based businesses are becoming very popular in the United States, including here in Ball Ground, GA where the population is fewer than 2,000. You may be a talented and educated graphic designer or you choose to sell Mary Kay or Avon products out of your home in one of the beautiful neighborhood communities, which include Ivy Meadow, Laurel Ridge Estates or Woodhaven Bend.
What's Wrong With Home-Based Businesses?
Although there is nothing wrong with working out of your home, the problem lies within the fact that many of these home business owners do not have the proper insurance coverage and protection that is needed. It is a common misconception that homeowners insurance will cover the home-based business.
What Coverage Is Missing?
Most home business owners require additional protection that goes beyond their standard homeowners insurance policy. Here are just a few types of business coverage that is lacking and how it is beneficial to the business and its owner:
Premises Liability – Let's say that you placed a significant order for your home-based business and it is being delivered by FedEx. As the FedEx driver is approaching your home with the package(s), he or she trips and falls over something in your yard, such as a basketball or yard gnome. Your homeowners policy is not going to cover the liability claim filed by the driver.
Off-Premises Liability – Just because an incident occurs away from your home, it doesn’t mean you won't be held liable. Let's say you are a real estate agent that works out of your home for your own company. A lot of the work you do is at the homes that you are selling. When you are showing a home to a potential buyer and he or she trips and falls, you may be held liable for the client's injuries. A business insurance policy is going to be necessary in order to cover the costs associated with such a risk.
Business Property – If you are a graphic designer that works out of his or her home, then you rely heavily on your software and your computer. Without these, you would be unable to perform your job to its fullest extent. In fact, you couldn't perform your job at all. If your computer was to get stolen or damaged, your homeowners policy may not cover the entire value of your equipment. Extra coverage is essential.
Every home-based business in Georgia is different, but it is crucial that you consider speaking to an independent agent about your business. One of our commercial insurance agents would be happy to evaluate your situation and discuss with you the type of coverage that you may need to ensure that you don't find yourself in a rut with your business.