When many people think of business liability coverage, they think only brick-and-mortar shops need it. They may think of the classic case of someone slipping on a banana peel in the produce section and taking the shop owner to court for injury compensation. However, it's not just business owners with storefronts who need business insurance.
Work from home? Wondering if you need liability coverage? Here are some signs you do:
1. You See Clients in Your Home
If clients ever come to your home, you likely have the same need for liability coverage that a brick-and-mortar business has. To take the simplest example of what could happen, imagine there is a puddle of water on your front path. Approaching your door, a client slips in the puddle and gets hurt.
If that happened to a friend or a personal guest, your homeowner's or renter's policy would likely cover any liability issues that pop up. However, as that person was there for your business, your homeowner's or renter's policy generally will not cover that. By extension, business insurance could be critical.
2. You Sell Products
What happens if a product malfunctions? What happens if someone gets hurt using your product as intended? When it comes to products, multiple things can go wrong, and as the seller, those issues could be traced to you.
If you manufacture products, you should certainly have liability coverage. If you resell other manufacturer's products, you either need to make sure that the manufacturer carries all the liability or get a policy for yourself.
3. You Provide Services
In many cases, you need liability coverage if you provide services. For instance, imagine you cater a wedding and the guests get ill from the food. That could create a huge liability issue, and without coverage, you risk losing your business as well as your personal possessions. Liability coverage protects your assets from those types of situations.
In some industries, you may need a specific policy that addresses the exact type of work you do. In particular, if you are a therapist who sees people at home or a medical doctor who has an office in your home, you may need malpractice coverage in addition to general business liability coverage.
4. You Have Employees
Finally, if you have employees or even freelancer contractors who also come to your home and work, a liability policy may also be essential. Talk with a business insurance broker to ensure your business has the protection in place that it needs.