Running a business out of your home helps cut costs, especially if you’re just starting out or running a web-based company. While this does eliminate rent and other expenses, business insurance is a valuable investment you shouldn’t overlook. Below are answers to a few questions home-based business owners have about protecting their interests from risk.

What to Know About Home-Based Business Insurance

Will my homeowner’s insurance cover my business property?

The standard homeowner’s insurance policy specifically excludes business property, so your computer, office furniture, and inventory may not be covered. Business insurance is designed to protect these assets by compensating you for damage caused by a covered event. If a roof leak ruins your computer or a fire breaks out, this coverage will allow you to get back up and running as quickly as possible.

Do I need a separate policy?

If you only have a few thousand dollars in equipment and don’t receive many business-related visitors, you can purchase a home insurance endorsement. Riders, as they’re often called, simply extend the coverage provided by your existing policy.

A separate business insurance policy will offer higher limits and more flexible coverage. If you have inventory in your home, expensive tools, or frequently have clients visit your house, a business insurance policy will likely be a better investment.

What other protection does my business need?

If a guest or client trips and falls on the sidewalk or experiences another injury on your property, you could be held financially liable for your injuries. Normally, your home insurance policy’s liability coverage will pay these expenses for you, but most insurers specifically exclude injuries related to work.

Your business insurance policy will fill the gap by providing additional liability coverage. These policies will cover the cost of valid claims and provide the resources to defend yourself against spurious lawsuits.

Do I need commercial auto coverage if I use my own vehicle?

Like home insurance, auto insurance policies typically exclude accidents that occur when you’re working. If you use your own vehicle to make deliveries, meet with clients, or transport supplies, your agent will likely recommend purchasing business auto insurance. This coverage will help protect your assets and shield you from lawsuits if you cause an accident during a business-related trip.

If you run a home-based business anywhere in Alaska, Dunlap Agency will help ensure your assets are protected. They’ve been serving entrepreneurs throughout the state since 1986 and are committed to providing personalized service and the best possible rates. Visit their website for more on their business insurance offerings, or call (907) 456-5202 to request a free quote today.