Starting a home-based business can be one of life’s most liberating decisions, adventurous career moves, and riskiest ventures.
There’s a lot to consider, and plenty of planning to do. However, as business savvy as you may be, too often, owners overlook how a home business may affect aspects of their existing home insurance…and the potential coverage gaps it may open up.
With our help, though, you can help spot and fill coverage gaps like:
1. Risks are everywhere! Make sure you have the appropriate type of coverage.
Liability risks are all around us, and home businesses are no exception. Let’s say you’ve ordered a couple of new computers to fill out the home office, and when they arrive, the delivery person slips on a step and gets hurt. Now you’re at risk of a lawsuit!
Under normal circumstances, your homeowners and/or umbrella policy can cover these types of losses. Opening a home business means you’ll spend more time at home though, and that may expose you to greater liability risks or liability coverage gaps. If that’s your plan, it’s smart to talk to us about reviewing your existing policies, because your homeowners and your personal umbrella policy would likely not cover you in a business-related liability issue.
To prevent any potentially costly coverage gaps, talk to me about your insurance needs before you start your home business.
2. Building a home office? Make sure your insurance will cover it.
Thinking about doing some renovations on your home, to make it easier to do business? Do you want to build a home office or an addition to work from?
Renovations can do wonders for your life and your home’s value, but it’s important to know they can also create gaps in your homeowners insurance.
A home remodeling project, big or small, can change your home’s reconstruction costs (what it would take to rebuild your home after a loss). Since that’s what homeowners insurance covers, it’s crucial to update your limits to reflect the cost to rebuild your home after the remodel.
If the limits are not updated, there could be a glaring difference between what you’re covered for and what it could actually cost to rebuild your house...leaving you to foot the bill in the event of a disaster.
3. Protect your family, spouse, and employees. Review your Life insurance.
According to a recent study by the US Department of Labor, in 2014, 57% of private businesses offered employees a life insurance plan, with an average of 97% employee enrollment. That means a huge percentage of working people have life insurance through their job. If that’s your case as well, then leaving your existing job and starting a home business may lead to a life insurance gap.
No longer can you rely on work to provide life insurance, or even supplement your life insurance. As a small business owner, that’s your responsibility now.
If you’ll be the company’s only employee, let's review your personal life insurance policy needs to make sure you’re covered the way you want to be. If you have, or plan on having employees though, it’s also smart to examine your life insurance options for them.
Major life changes, like starting a small business, can alter your coverage needs as well. Without taking the time to review your policies, you could expose yourself and your business to a variety of insurance gaps.
Thankfully, my team and I can help you spot gaps. Talk to us today at 858-487-9200 to help find gaps that may be hiding in your coverage.
The future of your new business may be riding on it!