Many small businesses start out as home-based businesses. Oftentimes, the reason for this is that home-based businesses offer individuals the ability to start their own business without the same high start-up and overhead costs that come along with purchasing or leasing a separate commercial location. However, when choosing to operate a business out of your home, it is important to ensure you are still taking advantage of commercial products that are designed specifically to protect your business. Business insurance coverage is a perfect example of this type of product. 

Home Insurance Is Not Designed For Your Business

Many home-based business owners overlook the need to purchase business insurance because of the mistaken belief that their homeowners insurance will cover both their home and their business assets. This is not the case. While homeowners insurance does offer coverage for personal items that are kept in your home, this coverage does not extend to items that you have purchased for business use. In fact, most homeowners insurance policies will expressly exclude coverage for items that are used for business purposes. This includes items such as computers and other office equipment which may be used for both personal and business purposes. The only way to ensure that these items are covered in case of damage or theft is to purchase business insurance coverage, which is designed specifically to meet this need. 

Protect Yourself From Personal Liability

In the event that a customer is injured while visiting your business or using one of your products, you could be held personally liable for any resulting costs if you have not chosen to purchase business insurance coverage. This is because, just as homeowners insurance does not cover your business assets, your home insurance will not offer liability protection if an injury occurs during the course of conducting business. If you do not have business insurance to cover you in this situation, the injured party will be able to go after both your business and personal assets in order to compensate for their loss. Not only can this put your business finances in jeopardy, but your personal finances as well.

Maintain A Professional Appearance

One of the biggest disadvantages to operating a home-based business is that it can be difficult to establish and maintain a professional appearance and reputation. This is because some consumers do not automatically place home-based businesses in the same category as traditional businesses that operate in the same niche. Ensuring that your business is properly licensed and insured can help to ensure you are able to project the professional appearance that is required for potential customers to take your business seriously.

Contact a business insurance provider near you to learn more.