The COVID-19 pandemic forced many small business owners to open home offices, while others started home-based businesses. If you’re one of them, it's smart to protect your investment with business insurance. Here are some frequently asked questions to help you understand the necessity of this insurance plan.

A Helpful Guide to Home Business Insurance

Why do I need coverage?

Home-based businesses are often exposed to fewer threats than workplaces, but it’s still important to have coverage. Business policies will protect your vehicles, business equipment, and inventory. If an accident or natural disaster occurs, your carrier will help replace these crucial parts of your business to limit downtime.

Will it overlap with my homeowner’s insurance?

Homeowner’s insurance covers losses to a certain extent, but the compensation for a flood or fire may not be enough to equal the value of your home business's high-end photography equipment or tech. Homeowner’s policies also don’t cover business specific-losses, like data loss, loss of income, or liability lawsuits.

What policies are offered?

Policies are tailored to a variety of business scenarios. If you're a sole proprietor with a simple home office, adding an in-home business insurance policy will protect your assets from natural disasters.

If you store inventory or have a multi-person team, upgrade to commercial business insurance. These policies protect against property damage and bodily injury. If there’s a business disruption due to a global issue like COVID-19, these plans also cover lost income for a period.

Liability insurance is also necessary if customers and guests come to your home office. If they’re injured at your home and file a lawsuit, liability coverage handles your courtroom fees and payouts. Explore commercial auto plans as well if you park one or more business vehicles at your home.

Do I need worker’s compensation?

Worker’s compensation is required in many states and protects full-time and temporary employees if they’re injured on the job. You may not need it if you’re the only employee. However, if you hire an assistant from time to time or bring on seasonal help, secure a policy.

If you’re ready to invest in business insurance, contact Dunlap Agency. This Fairbanks, AK, insurance agency has helped customers since 1986 with a wide scope of coverage, from home and auto to small business and health. Call (907) 456-5202 to request a free quote, or visit their website to explore their policies.