You run a small home-based business and you are happy with the revenue which you earn. Unfortunately, all this can go away in just a few seconds due to a natural disaster or a claim from a client. That is why you require protection. The best way to get it is to buy business insurance. Use some practical tips on how to shield your venture in the most effective way.
Cover all of your business assets.
The equipment and materials which you use for commercial purposes are not covered by your home insurance. You need to protect them with business insurance. Prepare a list of all assets which you use from your computer to the furniture. It is best if you get a comprehensive policy which covers your assets in case of a wide range of perils. If you have a limited budget in the beginning, however, you can protect them against the most common perils like theft and fire and then upgrade your cover.
Protect your revenue.
If your equipment gets damaged due to a peril, you will get compensated for its loss. However, you will still not be able to work and earn revenue for a certain period of time. In this situation, you may not have sufficient cash to pay any creditors, leasers and suppliers. You may lose some clients as well. If you have business interruption cover, your cash flow will be protected. The insurer will help you with making all payments and with the recovery of your commercial operations. For example, you can get money for renting equipment which will enable you to keep working until you can buy new one.
Consider getting liability insurance.
If you have clients visiting your home office or you work on the premises of clients regularly or from time to time, you will benefit from getting public liability cover as part of your business insurance package. If you produce tangible products, you will need product liability cover. If your company offers services like most home-based businesses, you should definitely get protected with indemnity insurance also known as professional liability cover.
Insure any business vehicles in an appropriate way.
If you use your private car or any other privately owned vehicle for commercial purposes, you need to get commercial auto cover. This is because an individual policy will not be valid for such vehicles. It is best if you get a comprehensive commercial auto cover which protects your vehicle against collision damage and various perils as well.
Finally, you should compare quotes from different companies to pick the best business insurance policy for you.