Starting A New Business from Home? Don’t Forget Your Insurance

Starting a new business is always both exciting and daunting. There are many things to think about and to put in place to give your venture the best chance of succeeding.

You shouldn’t, however, neglect to think about what could go wrong. Having insurance in place can be the difference between survival and catastrophe if times get tough.

If you are starting a new business from home, here are five things to think about.

1. Start at home   
   
   Many home insurance policies provide limited cover for small businesses. However, if you are bringing staff onto your property on a daily basis, or have labour-intensive activity taking place, that is not the same as just using a home office. It is always best to disclose what you are doing to your insurer to make sure that your home and its contents will be fully insured if disaster should hit. 
   
   
2. Think about your car   
   
   Insurers always make a distinction between insuring a car for personal use, and for business purposes. If you are going to use your vehicle extensively, for instance to transport people, make deliveries, or move equipment, your insurer needs to know about it. That way you can be sure that any claim will be honoured.
   
   
3. What can’t you do without?   
   
   For many entrepreneurs, a cell phone and laptop are critical. If you would be unable to run your business without them, then make sure that they are insured. Specifying electronics on your insurance policy can be expensive, but if you are dependent on them, you are better off knowing that you can replace or repair them if anything goes wrong.
   
   
4. Protect your employees   
   
   If you employ anybody permanently, consider whether you might need employer’s liability insurance. This protects you financially if an employee is injured or contracts an illness at work in circumstances where COIDA (the Compensation for Occupational Injuries and Diseases Act) cover does not apply and you are liable for the damages. The risk may depend on what kind of work people are doing for you, so it’s worth discussing your needs with an insurance professional.  
   
   
5. Protect yourself   
   
   While it is important to think about what could happen if someone were to be injured while working for you, it’s also worth considering what would happen if someone working for you turns out to be less than honest. Employee dishonesty insurance covers things like theft, embezzlement and credit card fraud that could leave your business in a desperate state. No matter how much you want to assume the best in people, this could be a lifesaver.

To talk about the important insurance considerations for an entrepreneur, speak to your financial adviser.