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Top Reasons Why Your Home-Based Business Needs Proper Insurance


As technology advances, more and more people are finding it a lot easier to reach their entrepreneurial dreams right from the comfort of their own homes. You no longer have to fight traffic on your commute, nor do you have to have put on work clothes, if you don’t want to! The ability to run a successful business right from your home office is a dream that many people only wish they could do.


Despite the fact that it’s now easier than ever to become a business owner, the biggest factor that stops a lot of people from accomplishing their dreams is the costs associated with running a business.


Running a business from home isn’t going to have as many upfront costs as it would building a business from the ground-up but there are still costs associated with this business venture. To reduce financial burdens, business owners are constantly looking for ways to cut business costs but in their search, they make the decision to cut the most important part of their business… their business insurance policy.


Lots of home-based business owners won’t invest in business insurance because they don’t think they need it since they work from home. In fact, a lot of business owners have the misconception that their homeowner’s insurance policy will cover their business, but it won’t. Unfortunately, it’s not until some type of disaster happens that they find this out.


By working for yourself, you have a lot more flexibility and freedom but it also means that you and your business are at a higher risk of exposure to certain threats, and because of that, it’s important that you protect what you’ve built.


Investing in business insurance doesn’t have to break the bank, either. Companies like Simply Business provide businesses with coverage to meet your business needs at an affordable rate. To simply put it, business insurance isn’t an option for your business… it’s a necessity. Here are the top reasons why your business needs proper coverage.


You’ve Taken Out a Small Business Loan

As you know, it takes money to make money, which is why some small business owners take out small business loans. But there are conditions to taking out loans for small businesses, and one of those conditions is that you must carry insurance.


Lending institutions require the businesses they loan money to, to carry business insurance because it protects your business… it’s for your benefit and it’s a safety net that assures them that their loan to you will be protected and you’ll be able to make your payments in the event some type of business interruption occurs.

You Live in an Area Susceptible to Disasters

If you live in an area that’s prone to natural disasters like tornadoes, floods, or hurricanes, your home and business are at an extremely high risk for suffering damages. According to US News, California is the most at risk for natural disasters.


But just pay attention to the weather you have in your area… Depending on the type of business you have and the types of natural disasters your area is prone to, it may require you to have an additional (more specific) policy to your standard business insurance coverage.

Your State Requires It

Depending on the state you live in, it may be required for you to carry business insurance. This is especially true if you have employees. But carrying business insurance is just a smart business move regardless of your state laws on it. All too often, people look at business insurance as this extra monthly expense, when it’s really the saving grace to your business’ survival.

You Have Employees

Just because you’re running a home-based business, that doesn’t mean you can’t have employees, whether they’re remote workers or come to your home a few days out the week. But if you do have employees, you indeed are required to carry workers’ compensation insurance to cover them in case they suffer any injuries while on the job.

You Have the Potential to Get Sued

As a business owner, whether you’re selling products or services, you’re at risk for litigation. Someone could claim your products were defective and caused them harm… Depending on the type of business you’re running and the services you’re providing, someone could also say that your services caused severe damages to their health or business.


The point is that you never know what could happen during the course of running your business. Everything from natural disasters to facing lengthy lawsuits, the moment you become a business owner, you automatically have a target on your back. Protecting your business and everything you’ve built is what’s going to keep your business “in business.”


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