You’re on the first stepping stone towards owning a business. After a few years of cosmetology school, you’ve finally opened up your own spot from home to start cutting hair. Circumstances led you to start small, so you could work your way up to renting out a bigger space designated for your business. You’ve built up your clientele and you’ve even received a few great reviews on Yelp. But are you sure you’ve taken all the necessary steps to ensure your business runs smoothly?
During your first cut with a new client, you’re discussing styles and length. While cutting his hair, you’re distracted, talking about his homelife, and you nip his ear. As a result, he must get two stitches. You are financially responsible for his injuries.
Some may think that the liability portion of your homeowners insurance will cover the costs of the injuries. This is not always the case. Often, home business is excluded from the policy, which requires you to purchase a separate insurance policy for your business. If the homeowners policy does cover the injury, there is limited coverage. Should the medical bills exceed the limits, you could be sued for the injury claim.
For a small claim like the one described above, you’d probably come out okay. But there are numerous other ways someone could get hurt more severely on your property. There are other reasons you’d need to file a claim. If you are opening a business from home, here are some ways to help you decide if you need to purchase business insurance.
IF you. . .
Have foot traffic, or clients come to your home
Have expensive inventory and supplies at your home
Have employees working for you
Do not have a back-up place for your business if there is damage to your home
. . . then you should consider a business policy.
Always contact your Insurance agent for any changes in regards to your home.