If you’re a small business or individual, you have different risks, protections and needs than a large corporation. But you’re still going to need insurance coverage, so it’s important to be familiar with what to consider.
In our last post, we talked about what you would need in a life insurance policy or long-term disability policy. In our second installment, we will cover what you should look for in home, auto or umbrella coverage.
Home Insurance for Small Businesses and Individuals
If you’re like half of all self-employed people, you do the majority of your work out of your home. When your house also becomes your office, your homeowner’s insurance may need to account for that. Here are some points to consider when you’re thinking about adding an in-home business policy:
Equipment – A typical homeowner’s insurance policy may not cover certain equipment you use for your in-home business. Some policies may even have restrictions against some in-home businesses, so check into that thoroughly before signing on with a policy.
Clients – Do you host meetings in your home or run a business that brings clients to your home, or do you do business out of your clients’ homes? Those are important points to cover in your policy, particularly when it comes to third-party injury claims related to your business.
Data and Security – If you keep confidential data at home, it’s a good idea to add on additional protection for any security breaches or technology malfunctions that might happen.
Auto Insurance for Small Businesses and Individual
If you use your vehicle for business purposes, your typical auto policies won’t cover property losses or liability issues related to your work. That’s where commercial auto insurance comes in.
A commercial auto insurance policy helps cover damage or loss to your business vehicles, injury of drivers or damage you or other drivers cause to others. Depending on what you use your vehicle for in terms of your business, this could be a very important policy investment for your work.
Umbrella Insurance for Small Businesses and Individuals
Whether you have a small business with employees or you’re running a one-person operation, business coverage is a smart way to protect yourself from lawsuits. The type and amount of coverage you need will vary based on your work, but a good business insurance policy will protect you from most of your standard lawsuits.
However, your policy may have holes in it when it comes to liabilities very specific to your business. In a nutshell, umbrella policies will strengthen weak areas on your business home or auto policies.
Protecting yourself and your business can be tricky, and that goes for your financial goals as well. Read more here about setting the right money goals for your future.