PROTECT YOUR SIDE HUSTLE protect you against potential negligence or failure-to-deliver claims made by your clients .
Product Liability Insurance
Product liability insurance protects your business for damages to property or a person caused by a product you designed , manufactured , or supplied .
Business Auto Coverage
If you need to make ( or pick up ) deliveries , visit clients , or otherwise use a vehicle for business purposes , your personal auto policy won ’ t cover the business use of the vehicle . Instead , you ’ ll need business automobile coverage , which will provide coverage if you are in an accident .
Other Coverages
There are other home-based business insurance coverages that may be important , depending on your business . For example , if your business has employees , you may need workers ’ compensation insurance . Commercial crime insurance protects against losses from equipment theft , fraud , and other crimes .
Depending on the type of home-based business you have , not all coverages apply , and other coverage options may be available . Just ask us — we can help !
PROTECT YOUR LIVELIHOOD AND YOUR HOME
Just because you operate a business in your home doesn ’ t mean your exposures are covered . Purchasing the right insurance coverage today may be the difference between success and failure . A homeowners insurance policy is designed to cover personal exposures , not business exposures . Here ’ s what you need to know to make sure you ’ ve got all your business insurance bases covered .
To understand your risk exposures , it ’ s important to review your property value and business exposures .
To get you thinking , here ’ s a list of questions to consider :
• How much is your equipment worth ? Conduct an inventory , listing everything you use to operate your business .
• Does the service or product that you provide create extra liability ? For example , what if you made an error ? Do you serve alcohol ? What happens if your product is defective ? Do you take possession of your clients ’ property ?
• Do you stock inventory ? If so , make a list of the materials and products that you sell and , if you do any of the manufacturing , the materials used to make them .
• What about vehicles ? Any vehicle used for business purposes must be insured , even if it ’ s personally owned .
• Do you , or your employees , perform work in clients ’ homes ?
• Do you have employees ? If so , you need the appropriate workers ’ compensation coverage as required by the state .
COVERAGE OPTION 1 , 2 , OR 3 ?
Based on your business needs , you have three basic coverage options to choose from , depending on your level of risk : 1 . Homeowners Policy Endorsement
This provides the least amount of coverage and therefore isn ’ t ideal for most home-based businesses . While it may provide enough coverage for a freelance writer or another profession with no business foot traffic , it ’ s not enough for someone who employs others , has clients visiting his or her home , or has valuable business equipment and / or inventory .
2 . In-Home Business Policy
More comprehensive than a homeowners policy endorsement , in-home business coverage is a stand-alone policy that provides higher amounts of coverage for business equipment and liability .
3 . Business Owners Policy ( BOP )
A BOP bundles property and liability insurance into one policy . Created specifically for small to mid-sized businesses , a BOP covers your business property and equipment , loss of income , extra expenses , and liability . It ’ s the most comprehensive property and liability option . It doesn ’ t include workers ’ compensation , health , or disability insurance , which are available as separate policies .
So , does your side hustle or home-based business need insurance ? It certainly depends on the type of business you ’ re operating , but you ’ ll be much better off having a policy in place . While your passion gets you up in the morning , don ’ t let the risk of operating keep you up at night . +
BY : ANTHONY DUBBS , PERSONAL RISK ADVISOR , GENERAL INSURANCE SERVICES
Anthony Dubbs began his insurance career in 2011 , joining the team at GIS in January 2019 . He grew up in La Porte , graduating from La Porte High School in 2005 . He currently resides in La Porte with his wife , Morgan , and sons , Graham and Landon . In his free time , he enjoys traveling with his family , golf , football , racing , baseball , and volunteering with the Boy and Girls Club of Michigan City .
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