If you operate a business from your home, you should purchase insurance to protect your assets in the event of a loss. While you may believe that a regular home insurance policy is enough, this is not necessarily true. Home insurance is intended for non-commercial use, to protect your residential building, personal contents and personal liability. It is not intended to protect your business equipment, inventory or business liability. Every business owner needs additional protection from a potential business loss, especially if you are a sole proprietor or in a partnership where you have unlimited personal liability.
Common home insurance claims are often for accidents involving property damage (broken windows or the sink or floor gets damaged from a fallen item), damages caused by a storm (such as a tree falls on your house), water damage, or intentional damage such as vandalism or theft. If a guest hurts themselves while on your property, your home liability insurance will protect you. If the person injured though is a client, co-worker, or a supplier, your home insurance liability will not protect you unless you have a “business extension” on your policy. It is important to note that just because your business is located in your home it does not mean that you are protected under your home insurance policy in Edmonton.
Adding Your Business as an Extension to Your Home Insurance Coverage
Home-based business coverage can often be added as an extension to your existing home insurance policy. Depending on your business, coverage can be added for business property, loss of income and liability. This protects your business property such as business computers and software, printers, file cabinets, equipment, supplies and finished inventory ready for sale. If your business property is valuable to your business, then obtaining insurance is crucial.
Adding Professional Liability Insurance
If you are professional in the Edmonton area (e.g., a medical professional providing health or personal-care services), it is important to protect yourself against liability claims related to the delivery of professional services. “Liability is the greatest risk for home-based businesses,” according to the Insurance Bureau Canada.
Errors and omissions (E&O) insurance is a specific type of professional liability insurance. It protects you from damages and legal defence costs if you advise clients wrongly or fail to provide expected advice and your client or his or her business suffers as a result.
Adding General Liability Insurance
If there is a risk of third party liability claims for property damage or bodily injury (e.g., you have clients visiting your home or wish to operate a home daycare), then you will want to purchase General Liability insurance.
Insurance Related to Your Occupation or Industry
Your occupation and industry will dictate if you need other specific insurance. For example, you may require malpractice insurance if you are a massage therapist or chiropodist providing services from your home. For more information about these types of coverage you may need, speak to an insurance broker at MBS Insurance today.
Additional Coverages You May Need
When you run a home-based business, you may need additional protections, such as commercial vehicle insurance if you travel to meet potential or existing clients, suppliers, or pick up supplies or deliver home-made goods. Additional coverages may be available depending on the scope of your business. By meeting with an insurance broker who specializes in home and business insurance, you can purchase the protection that fits your needs at a competitive rate.
Obtaining a Business Insurance Policy in Edmonton
If your home-based business involves more than just you or your spouse, brings people into your home or takes you out of the home, then you may need comprehensive business insurance in Edmonton. Under commercial property insurance, you will have protection for your physical assets, property in transit and business interruption insurance. A Commercial General Liability policy will also protect you against third party claims.
Contact MBS for Your Home-Based Business Insurance Needs
At MBS Insurance, we can help you to understand what insurance is necessary for your business based on your unique situation, which can widely vary from one business to the next. We can help you find insurance for your home-based business at a reasonable cost and help you determine at what point you need a separate commercial insurance policy.
Contact your MBS independent Insurance Broker for business insurance in Edmonton today, or call us at 780-436-7880.