In today’s society, the need for insurance is never far from us. Even with so much unemployment, the current need for healthcare insurance has reached national proportions, and is under much debate because of government responses. But it does not stop there. The high unemployment rates have fostered a spirit of entrepreneurship that has not been seen in decades, and many of them are being run out of shoestring budgets and home basements. With this kind of monetary limitations, will the need for small business and homeowners insurance policies be the next topic up for national debate?
The Differences Between Small Business And Homeowners Insurance Plans
When you originally got your homeowners and renters insurance policy, you were seeking to insure the environs of your living space, as well as the contents of that space. Furniture, electronics, mementos, all of these are physical objects that have an intrinsic value to you and your family. This is the spirit behind homeowners and renters insurance policies, to replace what is destroyed as best can, for a monetary amount. A business and homeowners insurance plans could not be more different.
Small business insurance policies are nothing like other kinds of insurance policies. The nature of owning and running a business carries with it a different level of risk to an insurance company than owning a home or car, and there are quite a few variables involved that can easily raise or lower that risk on a daily basis. The fact that a small business is defined as one employing from one to under five hundred people does not help matters, as the one who is actually responsible for any risk is two: the owner, and his insurance company. This makes the nature of any created business and homeowners insurance policy hard to explain.
Small Businesses Today
With today’s economy the way that it is, it is estimated that those who have chosen to start a small business for self-employment do so out of their homes. Many may not have told their insurance companies this, and are taking a far greater risk than they realize by not doing so. While the monetary risks that a small business can incur, like personal injury lawsuits or product liability lawsuits, will not be covered under a homeowners policy, the insurance company needs to know so they can reassess the risk of further insuring the property.
One option that is open as far as insurance is concerned is to create your own version of a business and homeowners insurance policy by adding a small business liability insurance rider to your current homeowners insurance policy. This is essential if you will be running your business out of your home, as it separates legally what any claimants for liability against your business will have access to financially. With this rider attached to a small business and homeowners insurance policy, claimants cannot touch any assets not directly belonging to the business, like the owner’s home, for example.