Starting a home-based business is easy, but that doesn’t mean that tax and insurance planning for the business is simple. And unfortunately, many small, home-based business owners skip the insurance planning part altogether, assuming that it doesn’t apply to them. But no matter how small your business is, or where you conduct it, insurance is a practicality that should not be ignored.

Let’s take a look at three common misconceptions about home-based business insurance, and the truth behind them.

1. My business is small—I don’t need insurance for it. Your business exposes you to a set of liabilities that you’ve not been exposed to before. As a business owner providing a service or product to clients, you can be found liable for damages that your product or service causes. Without professional liability insurance to protect yourself, you could be exposing your business or personal assets to loss.

2. My homeowners insurance will cover everything. Home insurance is a personal insurance product and does not automatically provide protection for commercial activities that take place in the home. It does not automatically protect business property that is stored in the home and does not cover liabilities that are brought on by business activities. Your home insurance policy, when your agent and insurer are notified of your business, may include special coverage for these items. If not, then you need to consider separate commercial insurance for business property and, as mentioned above, liability insurance.

3. Since my business doesn’t own my car, I don’t need commercial auto insurance. Your business entity does not need to have ownership of your car in order for you to need commercial auto insurance. The type of auto insurance you need is not determined by the ownership of the car but by the purpose behind the use of the car. If you drive your automobile for business reasons, such as picking up clients, delivering products or buying supplies, or if you ever store business or client property in the vehicle, then commercial auto insurance is likely necessary.

The goal of commercial insurance is to protect your financial liabilities and ensure that you are insulated from the financial damage that insurable incidents can cause to you and your clients. But more than that, commercial insurance products act almost as a business continuation plan by ensuing that you won’t lose business assets over liability, damage and accident expenses left uncovered by an insurance product.

Let Heritage Insurance take care of your Regina Business Insurance today!
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