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Working from home comes with countless perks. You get to skip the commute, retrieve snacks from your own fridge, and spend your day in comfy clothes alongside your beloved possessions and furry friends.
You may assume that another benefit is having less risk than entrepreneurs who must travel to job sites. After all, your interactions with others are more limited.
Like any other small business owner, however, you take on risks related to your venture — even while working from your couch. That’s why any “homepreneur” should invest in business insurance.
Why home-based business insurance is important
If clients or vendors visit your home business location, there is a risk (albeit small) that they could suffer various injuries or damages as a result of an accident. Should a third party claim that your business caused them to incur an injury or to experience property damage, you might need protection from the associated financial costs.
“Wait! Doesn’t my homeowner’s or renter’s insurance cover that?” you might ask. The short answer is maybe.
When it comes to your long-term financial health, maybe protecting your assets doesn’t quite cut it. That’s why most home-based business owners need both professional liability insurance and general liability insurance.
Liability insurance for home-based businesses
General liability insurance provides for the investigation, defense of claims and payment for damages as a result of the following kinds of incidents:
Non-employee, third-party party bodily injury – Should a client or other non-employee third party suffer an injury while they’re in your home on business, they could claim you are liable. When you’re at fault for an accident, directly or indirectly, your general liability insurance could help protect you from the financial fallout of a bodily injury claim.
Third-party property damage – Should you accidentally damage a third party’s business property (say, a laptop), they could allege you are liable for the costs to fix or replace the item. Once again, general liability insurance could help protect you from the expenses incurred because of this incident.
Customer property protection – Some insurers exclude damage to customer property while it is in your custody or control under their policies. If you’re a home-based tailor hemming a client’s wedding dress, and the garment is stolen or accidentally damaged in a fire on your premises, Thimble’s Customer Property Protection could help cover the cost to replace it. While some insurers would exclude customer property coverage from their policies, we bundle it with general liability insurance for all durations.
Professional liability insurance is a must-have if clients rely on your professional expertise and advice. There’s always the risk that someone could file a claim against you. If a client states that your advice (or lack thereof) caused them a financial loss, you could be held liable. This is where professional liability insurance can help.
Who needs home-based business insurance?
Almost every home-based business needs insurance. Whether you’re a DJ, marketing consultant, or crafter.
Here are some of the professions covered by business insurance via Thimble:
Freelance & consultants:
Other types of insurance to consider
Workers’ compensation – General liability insurance only covers bodily injury to a non-employed third party, which could include a client or bystander. The investigation, defense, and settlement of such claims would be directly provided by your policy. To cover work-related injuries and damage to your own property, you would have to acquire different policies (workers’ compensation and commercial property insurance).
Equipment insurance – To protect your equipment such as cameras, laptops, or any other gear you use, you need a type of coverage known as inland marine insurance.