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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.