If you are a business owner and you think you do not need insurance, think again. Even if you don’t have any major business assets, every business has at least some property. Come to think of it, your business is your property. Similar to your home and car, your business needs to be protected from loss, damage, and liability. Additionally, your business is likely your only source of income, so you need utmost protection from the potential loss of that income. This protection comes in the form of business owners insurance.
Generally speaking, there are two major types of business owners insurance, which are property insurance and liability insurance. Property insurance covers any damage to or the loss of the policyholder’s property. In addition, if somebody sued your business for damages caused by you or your possessions, the cost of that lawsuit would be adequately covered by your business owners insurance, namely liability insurance.
Even if you work out of your home, you will need adequate business owners insurance. Why is this so, even if you have homeowners insurance? Well, the loss of business property is generally reimbursed up to $2,500 in the house, and only up to $250 for business property that is damaged or lost away from the premises. Even if your home-based business is as simple as an art studio, such limits may be much too low to cover all the equipment and materials that you have accumulated for your business. What is also very important to note is that no business liability coverage is included in any standard homeowners insurance policy. |
