You probably already have home-owner’s insurance, but do you need a separate business insurance policy for your home-based business? Many home business people don’t think so, but this could be an error of omission. Here is an article from Orlando Bizwomen that addresses that subject.
According to this article, most home owner’s policies cover about $2500 of business property on the home premises. That isn’t very much when you consider your computer (along with all the peripherals), your business furniture, and other business items. In addition, there usually is no liability coverage to cover you if you have clients or customers coming onsite to your home business.
If you have any kind of inventory (if you’re using a Light Bulk Wholesale approach to your home-based business), your items will certainly not be covered against theft or damage. Even if you use a Drop Ship business model where you have no onsite inventory, you may still be surprised how little that $2500 will cover. In any case, this subject is going to be part of my ‘end of year review’ for my business and I’lll get in touch with my insurance company accordingly.
For more information on how drop shipping is used in a home-based business, see my previous post here. For more information on insurance options for the Home-Based Business, see this AllBusiness Article.