If you operate a business out of your home, you may think that there is no need to purchase commercial insurance since you do not operate out of a commercial property. You may even assume that your business will be covered by your homeowner's insurance since it is located inside your home. However, both of these beliefs are incorrect. Even home-based business owners will need to purchase commercial insurance. In this article, you can learn more about three of the reason why this commercial insurance coverage is so important to you and your home-based business.
#1: Homeowners Insurance Will Not Cover Business Losses
Just because your business is based out of your home does not mean that you can count on your homeowner's insurance to cover business losses resulting from damage or theft. If any of your business equipment or inventory is damaged, you will need to have commercial insurance coverage in order to have the cost of repairing or replacing these items covered. In the absence of commercial insurance, you will be required to cover all of these costs on your own. This can be financially devastating if your home business operates on thin profit margins or if you are in the process of working to expand your business.
#2: Liability Insurance Will Protect The Financial Future Of Your Home Business
Many home businesses are small in nature. Consequently, even a minor lawsuit has the potential to put a home-based business out of business. Purchasing commercial insurance coverage will ensure that you do not need to cover the full cost of a lawsuit out of your own pocket if you are ever sued. This protection against liability lawsuits can help to ensure the financial security of your business for many years to come.
#3: Some Customers And Vendors Will Insist On You Being Fully Insured
Commercial insurance not only protects your business, but it also protects the customers and vendors that you do business with on a daily basis. That is why many customers and vendors only choose to work with businesses that are fully licensed and insured. If you have chosen not to purchase commercial insurance, you could be losing business to your competitors as a result of this decision. Purchasing the appropriate insurance coverage for your business needs will allow you to prevent this from happening and ensure that your business presents a professional image to all potential customers.
For more information, contact a local insurance provider, like Colston Insurance Agency.
Share23 May 2022
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