We have heard this quiet often. If I run my business from my home, damages will be covered by the homeowner’s insurance. However, this may not be entirely correct. There are many small home businesses that still rely on this fact. Many people have started their small business from their own homes.
This could happen when they have lost jobs in the corporate sector. Many of these businesses revolve around the Internet, such as web design, affiliate promotion, eBay consignment and others. It means that we may rely on things that are not covered by homeowner’s insurance policies.
Modern equipments could get damaged due to unfortunate things. As an example, computers can be destroyed by power surge. A single nasty virus could paralyze the entire local area network inside the house. These things could certainly put a stop on our business operation. It is obvious that standard homeowner’s insurance plan won’t provide coverage for such a thing.
Repairing the damages would need to be considered as a type of business expenses. This can be a difficult thing to do, especially if we need to keep p with the client’s schedule. In some cases, we may even need to purchase a substitute computer, causing our overall profit to decline.
Things like this could really happen to any small business establishment. After an unexpected job loss, a family could use the compensation and tax refund to purchase computers and other related equipments. Things may have run smoothly for a few months and suddenly, everyone inside the house heard the loud pop noise.
This could happen when a huge power surge cause huge damages to the equipments. Everything could get zapped and smoked. This unfortunate situation will halt the business operations and data stored in the computers could get lost forever. This is an occurrence that we want, not only to prevent, but also covered.
Getting a small business insurance policy could define how our company should be protected financially. This policy could include different components, such as product legal responsibility, general liability, home-based insurance, workers’ compensation, Internet business insurance, business interruption insurance, legal insurance, malpractice insurance and key person insurance.
These components are essential if our small businesses can’t be protected by common homeowner’s insurance. Digital-based insurance is also important for companies that rely on computer usages. As an example, we should deal with liability caused by viruses and hackers.
E-insurance should help us to cover for damages caused by illegal online activities. However, there are things that can nullify insurance protections, such as electronic copyright infringement, spammy banner advertising and meta tag abuses.
These things could cause the company’s website to get penalized by search engines, resulting in disrupted business operations. The insurance company will investigate such occurrence and we are found to be at fault, there’s little chance that we will get the promised claims. It is important for business owners to define the proper amount of coverage for their company.