If you are a retailer, stylist, or any other small business owner in the beauty industry, chances are that you have done some research on how to best protect yourself and your interests. And if you haven’t yet, then here are a few good reasons why this is something you should be considering:
If you work from home, then you are most likely not protected by a business insurance policy. This means that if someone slips and falls in your salon or store (which is much more common than you would think) while trying to reach for something they forgot, nothing is stopping them from suing YOU. And if the court decides that it was your negligence that caused them to fall, then you could be held liable and might need to pay them for their medical expenses as well.
This article will discuss how these types of policies can protect your individual needs from the unexpected, so read on to learn more!
Home-based businesses are relatively common these days, and they’re certainly not a risk-free endeavor. You might have heard the horror stories of full-time employees who lost their jobs to outsourcing and were desperate for work — so they turned to start their own business at home? Unfortunately, many of them quickly discovered that home businesses, with all their perks, do come with risks.
Fortunately for you, there’s an easy solution to this problem: Home-based business insurance. Yes, it sounds a little daunting at first, but once you read on and learn how these policies work; you’ll be glad you did! After all, if you have a home-based business and aren’t insured; one mishap could put your livelihood in jeopardy.
Thankfully, there are several different types of policies available, including commercial general liability (CGL), workers’ compensation, and others. Take a look at what each policy will cover to find the one that’s right for you:
Commercial General Liability Insurance (CGL)
This type of business insurance is probably the most popular. If your business is home-based, you will only need a CGL policy and not any other type of insurance. Protects you if an injury occurs on your property (e.g., someone trips over something)
Protects you if there’s product liability damage to a customer or client (e.g., the cookies you baked were contaminated with nuts)
Your financial assets are protected (e.g., if you have to pay a customer’s medical expenses before their case goes to court)
In some cases, your business automobile is covered by this policy.
CGL policies are broken down into two different categories: basic and broad. In most cases, you’ll only need a basic policy which includes accident coverage (e.g., injuries), product liability protection (e.g., for repairs and services), personal injury protection (e.g., if someone is injured as a result of your business operations), and premises liability coverage (e.g., accidents on your property).
Depending on your insurance provider, you may also be able to get guest medical protection, independent contractor expansions, additional insureds, and other add-ons with your policy.
In the next section, you’ll discover how to get started with buying an insurance policy for your home-based business.
Home Insurance for Your Home-Based Business
If you’re going to run a business out of your home, you may want to look into purchasing a commercial property insurance policy; this is basically a homeowners’ policy that’s customized for businesses.
The type of policy you end up purchasing will depend on the requirements of your home state and/or city. In some cases, a business license is required to operate from your residence; in other areas, you can set up shop without any additional paperwork.
What should you do about insurance coverage if you have a home business?
Whether you decide to work for yourself or someone else, you must have the appropriate level of insurance.
The first step is to find out what type of coverage your employer offers
For example, if you work as an independent contractor, your employer might offer an independent contractor policy instead of a more comprehensive policy such as disability insurance. If your employer does not offer any kind of coverage, this is the time to explore the market to find the best deal for you.
If you want a comprehensive policy with both medical and life coverage, your best option might be an individual policy that covers your family.
On the other hand, if you want to maintain your current coverage but add a business rider, an individual policy might not provide enough coverage. Instead, one option is to purchase a group insurance plan through your trade association or chamber of commerce that provides a mix of medical and life insurance options.
If neither of these options will work for you, the next step is to weigh your options.
Another alternative is to consider a business policy that includes medical and life insurance coverage along with other benefits such as group term life insurance, disability income protection, and accident coverage.
Umbrella insurance provides a safety net for your assets. It also offers coverage in the event of property damage or bodily injury, and it is relatively cheap.
If you have lots of assets, it might make sense to add umbrella liability coverage because this type of policy protects you from lawsuits that result from claims such as property damage and bodily injury.
The cost depends on your risk, so talk to an insurance agent about your options. If you are not sure whether your current policy offers this coverage, make sure to ask about it.
Umbrella insurance is not required by law in any state, but you can purchase it if you want extra protection against lawsuits. Here are some reasons why you might need umbrella insurance.
What you need to know about a home-based business insurance costs
The cost of insurance for a home-based business is less than if you were to have your own office. It is also easy to get this type of insurance. You should find one of the companies that specialize in it or get a referral from someone who has this type of insurance.
A typical home-based business insurance policy costs about $800/year, which is inexpensive considering the potential risks of running a home-based business are high! You should buy a policy that is tailored to your individual needs and can protect you from the unexpected.
In Conclusion, if you’re running a home-based business, it’s important to take steps in advance to get the appropriate level of insurance coverage. Knowing how much your potential risks are worth investing in can help you decide what type of policy is best for you and your family.
One option might be a commercial property insurance policy that includes medical and life coverage along with other benefits such as group term life insurance, disability income protection, and accident coverage.
Another alternative is an individual health plan through your trade association or chamber of commerce that provides lots of options for both medical expenses and liability costs (such as product injury). The cost depends on your risk; talk to an agent about which option will work best for you!