Many people who operate a business out of their home make the mistake of thinking they do not need to purchase commercial insurance simply because their business is not located on a commercial property. However, even if your company is completely run out of your home, it is very important for you to have commercial insurance protection. Continue reading below to learn more about three of the reasons why this insurance coverage is so important.
Protection For Business Equipment And Inventory
Despite the fact that all of your business equipment and inventory are located inside your home, you cannot count on your homeowners insurance to provide protection for these items. This is because it is standard for home insurance policies to exclude coverage for items that are business related rather than being of a personal nature. This means that if these items are stolen, damaged, or destroyed, you will not receive any compensation for them under your homeowners insurance policy. In order to be compensated for the loss of these items you will need to purchase commercial insurance.
Protection For Your Personal Assets
The legal line between personal and business assets can often become rather blurry when a small business finds themselves being sued without the proper commercial insurance in place. This is because many home based businesses are operated by sole proprietors and therefore do not have the same legal protections as larger corporations or an LLC. As a result the owners of these businesses can find their personal assets being seized in order to satisfy a business debt. Purchasing commercial liability insurance can prevent this from happening since you will have the coverage necessary to satisfy any legal liabilities without sacrificing your personal assets in the process.
Protect Your Professional Reputation
One of the most difficult tasks for any small business owner is to successfully compete with larger companies that operate in the same niche. This can be especially difficult for owners of home-based businesses since potential customers can sometimes look at the lack of a commercial storefront as a sign of inferior professionalism. One way in which small business owners can fight back against these baseless beliefs and ultimately remain as competitive as possible is by ensuring they are presenting the most professional appearance possible. Ensuring that your company has all of the appropriate licensing and insurance coverage is a great way to do this and to ultimately ensure your reputation as a true professional is protected. A company like United Counties Insurance Group has more information.