Home Business Insurance - What Do You Need?

542
-1

Published on

The thing about home business insurance is that many home-based business owners assume that their homeowner's insurance covers property damages and liabilities having to do with the business. This is not usually the case. They are two separate entities when it comes to insurance coverage.

Rather than find out after it's too late, it's a good idea to find out about insuring your home-based business at the start. It may cost less than you think because, in many cases, business owners can simply add on a "rider" to their existing policy. This can be much cheaper than purchasing a brand new policy.

Furthermore, business owners may need liability coverage if clients frequently visit the home, but they may not have much business property to insure.

Let's look at 5 ways you can cut costs when it comes to insurance fees:

1. Call Your Insurance Company

The majority of at-home business owners aren't aware that they can make a simple change to their existing homeowner's policy to cover damages due to business activities. This addition is called a home business rider, and it can be fairly inexpensive, depending on what needs to be insured.

2. Obtain Quotes from Lots of Different Companies

In order to make sure that you're receiving the best deal, you want to shop around. The quickest way to do this is through one of the online insurance networks where you can get multiple quotes all at one time. This is a real time-saver, and this method is more transparent and typically more competitive, which means you can avoid getting ripped off by unnecessary high rates.

3. Search for "Discounts to Groups" Offered by Organizations

Many times, regional business clubs or trade associations provide lower-priced group insurance programs not usually available to small or home-based operations. By buying in bulk, these organizations receive lower insurance premiums, when they can then pass on to their members. Becoming a member may cost you money, but may be inconsequential when compared to the insurance cost savings you receive.

4. Show Insurance Companies that You are a Low-Risk Client.

For instance, if customers, vendors or workers visit your home, install security and safety equipment as well as proper lighting and remove any potential hazards. If you are not sure what could make you a high-risk client, ask your insurance company. Then make any necessary adjustments.

5. Increase Your Insurance Deductible.

As with any type of insurance, when you increase your deductible, your premiums typically go down. Raising your deductible can lower your monthly premiums, but you don't want to raise it so much that you wouldn't be able to afford to pay for damages in an accident that the insurance doesn't cover.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
542
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • Home Business Insurance - What Do You Need?

    1. 1. HOME BUSINESSINSURANCEDo You Really Need It?
    2. 2. The thing about home business insurance is thatmany home-based business owners assume that theirhomeowners insurance covers property damages andliabilities having to do with the business.
    3. 3. This is not usually the case.
    4. 4. Rather than find out after its too late, its a good ideato find out about insuring your home-based businessat the start.It may cost less than you think because, in manycases, business owners can simply add on a "rider" totheir existing policy.This can be much cheaper than purchasing a brandnew policy.
    5. 5. Furthermore, business owners may need liabilitycoverage if clients frequently visit the home, butthey may not have much business property toinsure.
    6. 6. Lets look at 5 ways you can cut costs when it comes to insurance fees:
    7. 7. 1. CALL YOUR INSURANCE COMPANY The majority of at-home business owners arent aware that they can make a simple change to their existing homeowners policy to cover damages due to business activities. This addition is called a home business rider, and it can be fairly inexpensive, depending on what needs to be insured.
    8. 8. 2. GET QUOTES FROM MULTIPLE COMPANIES In order to make sure that youre receiving the best deal, you want to shop around. The quickest way to do this is through one of the online insurance networks where you can get multiple quotes all at one time. This is a real time-saver, and this method is more transparent and typically more competitive, which means you can avoid getting ripped off by unnecessary high rates.
    9. 9. 3. FIND GROUP DISCOUNTSMany times, regional businessclubs or trade associations providelower-priced group insuranceprograms not usually available tosmall or home-based operations.By buying in bulk, theseorganizations receive lowerinsurance premiums, when theycan then pass on to their members.Becoming a member may cost youmoney, but may be inconsequentialwhen compared to the insurancecost savings you receive.
    10. 10. 4. SHOW YOU ARE LOW RISKFor instance, if customers,vendors or workers visit yourhome, install security andsafety equipment as well asproper lighting and removeany potential hazards.If you are not sure whatcould make you a high-riskclient, ask your insurancecompany. Then make anynecessary adjustments.
    11. 11. 5. INCREASE YOUR INSURANCE DEDUCTIBLE As with any type of insurance, when you increase your deductible, your premiums typically go down. Raising your deductible can lower your monthly premiums, but you dont want to raise it so much that you wouldnt be able to afford to pay for damages in an accident that the insurance doesnt cover. Somewhere in the middle is usually best.
    12. 12. 5. INCREASE YOUR INSURANCE DEDUCTIBLE Most times, home-based entrepreneurs pay less since they have less property to insure. Some home businesses dont employ workers or even have clients visiting the premises. This can cut way down on insurance cost. This is actually one of the big benefits to running a small home business.
    13. 13. 5. INCREASE YOUR INSURANCE DEDUCTIBLE On the flip side, however, the smaller the business, the fewer the resources it has in the case of a problem or disaster. This is why its so important to insure the property that your business cant do without - your business is your livelihood.
    14. 14. 5. INCREASE YOUR INSURANCE DEDUCTIBLE Small business can easily go out of business overnight without the proper insurance coverage. And since the cost of insuring a home business vs a larger company is minimal, it just makes sense to make a small investment and minimize your risk.
    15. 15. Get a Free Quote Online:www.HomeBusinessCenter.com/123/insurance.html

    ×