Starting a part-time business to support your primary income can be very exciting. But it also comes with several considerations, one of them being if you need commercial insurance. The thing is that no matter the business size, there will be certain risks associated with it.
Your office property, supplies, and inventory won’t be covered under your home insurance policy. Hence, it is essential to get small business insurance quotes to know the risk exposure and coverage.
Risks Your Part-Time Business Faces
Even if you operate your part-time business from home, it won’t find a place in the home insurance. As soon as you receive income from commercial activities, it is no longer your personal property or assets.
Your business property includes inventory, machinery, tools, high-tech equipment, electronics, etc. Fortunately, some insurance providers give you the option to add special home-based part-time businesses as add-ons.
If you run the business elsewhere, you need separate commercial property insurance. So, in addition to the above list, a business insurance property will also cover the property’s main structure, outbuildings, furniture, and more. But there could be certain limitations with each policy; hence, you should ask several companies for small business insurance quotes.
In either case, your business faces risks like:
- Fire and smoke
- Hail, wind, and lightning
- Explosion
- Theft and vandalism
- Electrical damage
- Sewer backup and floods
- Impact of vehicle or aircraft
Some of the above can be included in the main policy or as individual add-ons. For rented properties, insurance may compensate the damages of your content that are on the premises. The rest will be covered under the landlord’s insurance.
What Insurance Do You Need for Your Part-Time Business?
Depending on your industry and services, the liability coverages differ, but all businesses have to get a standard insurance policy called commercial general liability insurance. Find more about these types here:
Commercial General Liability Insurance
This policy is common for all businesses, but the limits will be different. CGL covers business property damages and legal expenses that could arise from a lawsuit. If someone sustains injuries or damages their property on your premises, this basic liability policy offers protection.
Professional Liability Insurance
You require errors and omissions or professional liability insurance if you provide consultancy services or advice. Part-time professionals can receive protection from legal claims if their clients’ losses are a direct result of your advice. Even if someone is not satisfied with your service, they can file a claim, and the policy covers the costs.
Product Liability Insurance
If your industry is manufacturing or you sell and distribute products, you need product liability insurance. Customers can sue you for injuries or damages they have sustained after using your products. Product liability insurance covers legal expenses and other damages.
Cyber Liability Insurance
The use of digital technology has been increasing in recent years. Irrespective of your business size and revenue, you can be a victim of phishing attacks, hacking attempts, data breaches, or malware targets. Cyber liability insurance provides protection against all such cyberattacks.
Why Get Small Business Insurance Quotes Specific to Your Part-Time Venture?
Insurance premiums will depend on various factors like your claim history, business type, niche, annual revenue, etc. Besides, you can decrease the rates by choosing a higher deductible or getting bundled insurance products. Hence, it is wise to speak to your broker to get the best small business insurance quotes. Call us now to get started!