How to Get Home Business Liability Insurance

Almost everything you do, from driving your car to running a business, exposes you to potential liability for your actions. Liability simply means that you are at fault for the personal or economic injury or loss to another person. To mitigate this possibility, it is important that home business owners get liability insurance to protect their personal property from potential lawsuits.

Things You'll Need

• Calculator
• Business paperwork

Instructions

1. Perform an inventory of all the items your home business currently sells or uses. Gather receipts and invoices for these items so that you can accurately report the value of your business property to potential liability insurance companies.

2. Search out liability insurance companies that work specifically with home businesses of the type you run. Liability insurance companies that understand how your small business functions are more likely to be able to help you create a comprehensive policy.

3. Interview liability insurance companies. Ask each about the level of coverage provided for the premiums paid. Ask about loyalty discounts. Many companies will reduce the amount you pay in insurance premiums if you continue to be insured with their company year after year.

4. Disclose any past lawsuits or settlements to which your company was subject in the past. This will help the liability insurance company devise an insurance policy that will cover such problems in the future.

5. Request product liability insurance. This type of insurance will protect your home business from lawsuits arising from personal injury claims based on the use of the products you sell.

6. Ask potential insurance providers if the home business liability coverage will cover the costs of litigating a law suit. Litigation costs can easily become overwhelming for a small business, so make sure your coverage includes court and attorney fees.

Tips & Warnings

• Get cyberspace liability insurance if any part of your home business involves online selling. Internet-based home businesses are especially open to lawsuits based even on unintentional slander and libel.

• Get Technology Services Errors and Omissions home business liability insurance if your business provides technological advice or other services. This will protect you if your advice or services lead to problems with your client's machines.

• Add business liability insurance to your car insurance coverage if you use your car for home business purposes.

• Get malpractice liability insurance if your home business involves treating people physically.

• Home owner's insurance does not cover liability based on a business that you run from your home. Home business liability insurance is necessary to protect your personal assets from lawsuits based on your business activities.