Is Your Home-based Business Protected from Lawsuits?You have been working at a local business for over 10 years when suddenly the business goes under, so you decide to start up your own business.  There are many perks on the horizon, such as being your own boss, working independently out of your own home perhaps in your pajamas, and creating your own successful business reputation.  However, before you begin your business, you need to ask yourself some very important questions that if not addressed, could lead to financial devastation.  The most important question you need to start with is “Is your home-based business protected?”  Without proper business protection, you could be faced with lawsuits.

Having your N.C. business insured properly should be your main priority before any business endeavor is initiated.  Of course, always discuss details with your local N.C. independent insurance agent to ensure all the facts are outlined so the right type of business insurance can be put in place. Below are certain questions you need to address when deciding how to best protect your N.C. home-based business:

  • Will you have customers/clients coming onto your property?
  • Will you have office equipment in your home for business purposes?
  • Will you have merchandise for sale that will be stored in your home?
  • Are you planning to provide business services out of your home?
  • Are you planning to sell product(s) to customers?

Many situations can happen in the blink of an eye exposing you to financial devastation if you aren’t careful and haven’t planned accordingly.

Specific Scenarios You Should Consider Pertaining to a Home-Based Business

  • A customer falls down your stairs that you have been meaning to repair but failed to prioritize. Your customer, as a result, has suffered significant injuries and incurred exorbitant medical bills as a result.
  • The product you are selling has caused injury to one of your customers and now a lawsuit is being filed.
  • A fire starts in your home which destroys much of your merchandise and all of your office equipment. Later you learn that you were not properly insured and your N.C. homeowners insurance policy does not allow coverage for equipment and merchandise used for business purposes.
  • A customer receives your product but is not satisfied at all. By word of mouth, she tells everyone NOT to purchase any products from you and now your reputation has been tarnished.

These are just some basic scenarios that could happen that without the right business insurance protection could shut your business down.  If you have reflected on the above questions and typical scenarios and aren’t sure what kind of insurance you need for the optimum protection for your home-based business, immediately contact your local N.C. independent insurance agent for assistance.  Depending on your specific business needs, some of the business insurance policies you may need to consider include:

  1. Commercial Insurance Policy- This type of policy is designed to insure larger home businesses that are dealing with bigger amounts of merchandise and equipment, thus requiring a broader type of insurance protection.
  2. Homeowners Insurance Policy- If you have a small home business that only deals with smaller amounts of equipment and merchandise then you may only need the protection afforded by your typical N.C. homeowners insurance policy. However, keep in mind that if a customer gets injured on your property, there is no coverage under your N.C. homeowners insurance policy, and you may be faced with specialized limits of liability for your merchandise and office equipment if damaged. However, your N.C. independent insurance agent can discuss specific endorsements that could provide the needed coverage for your specific business needs.
  3. Home Business Policy- Typically, this type of insurance protection is designed for medium-sized businesses and includes property and liability coverages. If a customer falls at your home while doing business, this particular type of insurance policy will provide coverage or if a customer is injured by one of your products.

Before you start a home-based business, you need to consider all the above situations and meet with your local N.C. independent insurance agent to discuss the best insurance protection for your specific, unique business needs.  If you are thinking of starting a home business, speak to your local N.C. independent agent. He/she will be able to help you decide on the policy that is just right for your new business.