What Types of Small Business Insurance Plans Should Be Investigated?
A high percentage of startups begin their life as a home-based business simply for economical reasons. To keep costs low new business owners on a limited budget view the spare room ideal for a temporary and cheap office solution.
While starting a business at home can be the obvious choice, there are potentially expensive pitfalls that are rarely considered by entrepreneurs.
“Your homeowner or renters insurance policy is just that, and generally does not protect any business related situations. Once you introduce a business into the home insurance status changes and your liability increases,” states Keith Hunt V P Marketing for AboutSmallBusinessInsurance.com
AboutSmallBusinessInsurance.com provides all types of business insurance coverage for startups. Small business insurance includes commercial vehicle insurance, workers compensation, product liability insurance, small business liability and commercial property insurance. Free insurance quotes for comparison are offered with no obligation.
“Entrepreneurs don’t think about how their liability increases when starting a home-based business. In the course of the day-to-day business operation do you anticipate more visitors to your home, such as clients or sales people? If any of these people are injured in any way on your property you are liable and this includes delivery men!”
“Will you be using your family vehicle to make sales calls or deliveries? If so, the family vehicle instantly becomes a commercial vehicle and therefore probably not covered under your current automobile policy. That means any situation that occurs while you are using the vehicle for commercial purposes could be a total loss to you, including the car, contents and injury to other parties.”
“Does the business require that you have to store products? Would you store those products at your house or rent another location? What would happen if these products were stolen or damaged in an earthquake or fire? If not already paid for, the supplier would still be expecting compensation from you.”
“While on the topic of products, what would happen if the consumer was injured in some manner using the product? Even if you are a middle man you still have liability in this situation.”
“Remember," says one 25 year Commercial Lines Veteran, “… if you have a commercial business loss and you haven't properly disclosed, addressed and/or 'endorsed' those coverages onto your existing Home Owners or Renters policy, or purchased a Business Owners Policy (BOP) the insurance may decline all coverage due to that loss. By all means, discuss all aspects of your business with your existing agent."
“Sadly things happen, and we live in a litigious society. The cost of just defending a lawsuit could mean the loss of business, savings and even family home. Many policies have legal coverage only when mandated by law, or only to a certain limit, so be very careful and find out all the details."
“We strongly urge all entrepreneurs and home-based businesses to, at least, investigate the types of business insurance coverage that are available. Coverage that will protect you, the business and your family against unforeseen circumstances,” concludes Hunt.
For more information on the different types of business insurance coverage for startups please call 909-509-4433 or go to www.aboutsmallbusinessinsurance.com/
Company Name: About Successful Marketing Inc. Contact Person: Keith Hunt Email: firstname.lastname@example.org Phone: 909 636 4012 Address:P.O. Box 399 City: Mt Baldy State: CA Country: United States Website: www.AboutSmallBusinessInsurance.com