When you are self-employed, it can be difficult to establish the separation between your home and your business. Many of those who are self-employed believe they don't need any type of business insurance because they already have homeowners insurance that can protect them. However, homeowners insurance is not required to provide coverage for certain situations that are business related, even if it happened inside of your home. For this reason, you want to know the three main reasons you need business insurance to provide protection where your homeowners insurance will not:
You Have Employees:
If you have employees that work in your home alongside you, you need business liability insurance. This will ensure that if any of your employees are injured on the job, you will be able to cover their health costs along with other costs that have been a result of their injuries. If you don't have this insurance coverage when you employ people, you can be fined. You should also be sure that your licensing for liability insurance coverage for your business is displayed so that you are not likely to be investigated for not holding this in place.
You Have Customers Who Visit Your Home:
When you run your business out of your home, you may have customers that visit your home for whatever services you provide. If this is the case, you need business insurance that includes public liability coverage. This is essential to protecting yourself financially if a customer is injured while visiting your home. This coverage will also protect you in the case that damage is caused to your property by an employee or customer visiting your home.
You Provide Specialized Services in Your Home:
If you provide services, such as giving legal advice to customers or providing therapeutic treatments, you want business insurance that is going to protect you in the case that you are sued by a customer who is unsatisfied with your work. This is definitely not something that your homeowners insurance will cover. You will need business insurance coverage that directly protects you from situations such as this. If a customer decides to sue and wins the case, your insurance will protect you financially from having to pay out of pocket for the customer's compensation they received from the outcome of the case.
When you know these three reasons you need business insurance when you are self-employed and work inside of your home, you can be sure you are adequately coverage for what you need. For more information, contact companies like Knepper Insurance Group.