Working out of the home is a very low-cost business model that may South Africans find is a good way to get started running their own companies. But even though working at home allows you to avoid having to pay lease on a facility and buying a work vehicle, be aware that there are still expenses that you will need to consider or else you may be taking a serious financial risk. You still need to invest in some of the same kinds of insurance you would need if you were running a company out of a separate location. Many of the same circumstances still apply. Here are a few things to think about when shopping for home business insurance.
The dram shop insurance is available with the best benefits to have the desired results. You can consider different things while selecting the right business insurance. The covering is the great with the right insurance policy. The handling of the circumstances will offer the best results in the insurance covering.
You are not already covered.
Whether you own or rent your home, you may already have homeowners or renters insurance. And you may think your existing policies are enough insurance for now while you get started. You are probably wrong. Most homeowners and renters insurance will not cover any equipment you have that you are using for business purposes. Even though you may be using your laptop half the time for business and the other half for personal use, your policy will consider it a business property and most likely will not compensate you if your laptop is stolen. Be sure to check with your agent and see what your existing policy covers. You probably need to get home business insurance to cover all the property you use in the course of your business, even for your home itself.
Be aware of how much compensation you will receive.
Different home business insurance policies cover you for different amounts of loss, depending on the policy and the price. Make sure you know whether you get the full new replacement cost of any items that are stolen or damaged in a disaster, or if you only get the actual used value as compensation. Some equipment is difficult to determine the actual value of and you may find yourself having to buy substandard used equipment if your policy does not cover the new replacement cost. On the other hand, the amount you save on a policy that only covers you for th actual value could be put aside in the event that you need to replace something.
What about liability?
What is a customer slips in your home? Are you covered? Chances are that you aren’t. Even if you have a home business insurance policy, most of these policies do not cover your business for liability. For these cases you will still need to purchase a separate business liability insurance policy.
Your car is not already covered.
Don’t try to be cheap and get by with only your personal automobile insurance policy. You could very well end up regretting it. When you buy personal car insurance, the agent asks you how you will use your vehicle. If you state it is only for personal use, you will not be covered even if you were only making a quick delivery drop-off to one of your customers. Business use is business use and usually the extent that most insurance policies cover you for work-related use of the car is simply driving to and from your place of business.
Running your company out of your home can save you a lot of money, but make sure you are still taking care of the basics. You still need home business insurance. Talk to your local agent today.
