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Insuring Your Home-Based Business

It’s easy enough to announce you are starting your own business and will work from home, i.e., you will join the 38 million home-based business in the United States. It could be you possess a talent, an invention that you are now ready to market, or you can provide a needed service that you’ve determined will gain popularity.

But have you researched and considered all the steps you will need to take in bringing this home-based business to fruition? We thought we would take a few minutes today to provide some items to review, as you build your business plan. And for those of you who already have a home-based business, this could serve as a wake-up call on how to protect your investments.

Online Resources You May Have Overlooked

  • Regardless of how a small business is currently defined by U. S. Government’s Small Business Administration(SBA) most researchers will offer that 99.7 percent of all U.S. firms are small businesses. Visit the SBA’s website, particularly the section on Starting and Managing Your Business.
  • If you have considered using a resource like Intuit’s QuickBooks, then visit their Checklist for Setting Up a Home-Based Business.
  • It might surprise you that the United States Census Bureau has a wealth of information about Home-Based Workersalbeit somewhat dated, you may find their reports informative.
  • Depending on where you live, you will need to consider what types of licenses to obtain to open your home-based business: For example, general business license, home occupation permit, sales tax permits, sign permits, etc. The SBA has a page dedicated to State Licenses & Permits. And our State of Tennessee provides a website which includes Tennessee’s Registration and Licensing Department.
  • Looking for a mentor who can guide you through this process? Consider SCORE. Working in partnership with the SBA, they provide mentorship and sound business practices around the country to assist entrepreneurs and small business owners.
  • It might be, you feel you don’t have time to follow the news, but you can set a news alert on GOOGLE. You will receive an email when current news articles are available about Home-Based Businesses.

Insurance Considerations For Your Home-Based Business

Various sources will cite an alarming statistic: Nearly 60% of Home Based Business Owners Don’t Have Insurance! Furthermore, many people who establish or consider establishing a home-based business never stop to even ask a question about insurance coverage. The clear majority will assume that if they have a homeowner or rental insurance policy, then they are protected. And most homeowner/rental policies conventionally exclude coverage for any business exposures.

Your Insurance Agent Is A Home-Based Business Resource

Last fall, Small Business Trends published an excellent article “Why Home Based Businesses Need Insurance.”  This article is one of the best to obtain a simple and clear understanding of what a business owner absolutely needs to consider when starting a home-based business. For example:

The UPS deliveryman is leaving your home-based architect office and slips on some wet steps, injuring his back. Your policy [homeowner or rental] may not pay for his injuries because your insurance does not cover business deliveries or any third-party injury claims for that matter.

The good news is you can get answers to all your questions about such on-site injuries, as Contact Your Insurance Agent to Insure Your Home-Based Businesswell as, theft, accidental damage, and vehicle accidents by reaching out to your local insurance agent. Here at John Bailey Insurance, our expert staff can educate you on the different types of commercial insurance  and help customize a policy to meet your budget and protect your thriving business.

Question or Comment?

Got a question or a comment? Drop us a line, and we’ll get back with you shortly. Dial (865) 524-0785, or use this form: