Why home-based businesses need commercial insurance

More and more people are opting to operate a home-based business. Using your home requires less outlay of cash initially since you don’t need to pay rent or buy a building. But there is a temptation when your business is located in your home to assume that your home insurance will protect your business the same way it protects your home. All-Star Insurance Brokers Inc. in Aurora, CO has the expertise to help you make sure that you have the coverage necessary to protect your business.

Home property insurance protects your home from lots of perils. It is designed to be personal, not commercial. If your business located in your home were destroyed, you would find that a lot of the things you rely on for your business operations would not be covered by your home policy. Commercial insurance is designed to protect your inventory and any tools or machinery you might need to do business. You might get some coverage with home insurance, but not what you need. 

Home liability insurance protects you from injuries that a visitor might incur to your home. If you have customers or vendors who come to your home on business and are injured, your home insurance will not cover you. It would be best if you had commercial liability insurance to offer you the correct liability insurance. 

If your business cannot operate because of a covered peril, the insurance will provide the money you need to meet normal expenses with business interruption insurance. That includes paying bills and meeting the payroll, even paying yourself. Nothing on your home insurance would do this for you. 

If you have even one employee, you need to have workers’ compensation coverage for them.

Contact All-Star Insurance Brokers Inc. in Aurora, CO when you need commercial insurance information.