Are you thinking of starting your own business?
Congratulations! It’s an exciting time filled with questions and planning. But what’s often missed, is the consideration of insurance.
It might not be the most glamorous aspect of starting a business, but it’s still one of the most important steps to take before opening up shop. From an insurance perspective, here are the top five things you need to consider when insuring your home-based business:
1. Liability is something you should get to know.
If you’re selling something or providing a service, there’s always a third party involved: your customer. What if a mother trips dropping her child off at your daycare? What if a pin is accidentally left in a scarf and someone’s hurt? Third-party liability coverage is a huge aspect of running a home-based business and it protects you from being sued by a customer.
2. Your insurance company needs to know if things change in a way that could affect your insurance.
You might not think selling baked goods out of your home is a big deal, but your insurer knows just how vital it is for you to be covered. So, before you make any big business decisions, speak with your broker first. They’ll be able to help you determine what the best course of action is to ensure that you’re covered through your new business venture.
3. You may be able to add home-based business coverage to your current home insurance policy, as opposed to buying a separate business policy.
This depends on a few different factors, such as the business you plan on launching, the amount of staff you’ll hire, etc. Before you go shopping for a business policy, talk to your broker to see if you qualify.
4. Plan now for other countries.
If you’re planning on doing business outside of Canada, you won’t qualify for home-based business coverage and will have to purchase a separate commercial policy. Speak to your broker to determine what your options are for additional coverage.
5. Flaunt your business (especially to your broker).
Regardless of how much your home business brings in, you need to disclose to your broker that you’ve started a business. Failing to do so could leave you in trouble for not disclosing information that could impact your insurance. If something does go wrong, any home insurance claim could be denied, and if you get sued, you could be on your own. So don’t forget to share all the details with your broker to make sure you’re protected.