Business Insurance For Your At-home Business
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Due to the country’s economic instability and the sometimes-exorbitant cost of rent for commercial spaces, more and more South African start-ups are being run from their owners’ homes. This needn’t be an obstacle to success, but it does mean that special consideration should be taken, with regards your at-home business’ insurance needs.
To ensure the success of your operations, you need to protect your bottom line against the sort of unforeseen disaster that can cripple the nascent business. This does not become any less true, just because your home and your office share a location.
At-home businesses do not face any particularly grievous challenges, but you should still keep a few things in mind, pertaining to your business and home insurance policies.
Inform your insurer that your home is your office
Assuming that you are happy with the service your current insurer provides, and therefore do no want to go through the hassle of finding a new company to cover your commercial interests, you should still endeavour to inform your insurer about your risk and insurance context.
The reason being that you do not want complications or confusion to arise should you have to make a claim. If, for instance, your home office is burglarised and equipment is stolen, there is a chance that your current insurance company will refuse to pay out, if they were not made aware of the fact that your home is also your business – in other words, your commercial equipment is likely not covered by your home insurance policy and so your insurer may not be willing to cover it.
If you keep your insurance company informed, your policy can be updated to match your circumstances.
Look for insurance bundles
Enquire with your insurance company as to whether or not they offer specials for bundling policies under one insurer. So, if, for instance, your home insurer is also the provider of your car insurance, it is entirely possible that including your at-home business insurance as a part of their service to you, might earn you reduced premiums or other promotional specials.
Be warned though, do not use your current insurer as a pure matter of convenience. Bundling your policies together with a single insurance company must make financial and practical sense, beyond the simple convenience of a single point of contact for all of your insurance needs.
Review your insurance policy annually
Because of the blurred boundaries between your business cover and your home insurance, it becomes even more important to ensure that you take regular stock of your assets and how they are protected.
Not only is this important because of the close proximity of the personal and the professional, but a small business is likely to experience a lot of change, especially in its first few years of operation. As such, regular review becomes necessary, to ensure that changing circumstances do not slip past either you or your business insurance company. This sort of ongoing assessment of your reality and needs, will make sure that your policy matches your reality.