587-597-5478 heather@thinkinsure.ca

Home Base Businesses can affect your home insurance!

Having experienced the flexibility of working from home many employees are reluctant to return to the 9-5 day at the office.  Many of those employees either through attrition, the “great resignation” or “it’s the right time” have decided to open a home-base business.

Let’s look at how your Home Base Business affects you!

  1. Home insurance policies exclude bodily injury or property damage arising out of the commercial use of your home.    Someone coming to your home to pick up a product they purchased from you slips on the icy sidewalk.  Because they break a leg they may sue you for bodily injury. If so, you may have no insurance protection.
  2. There will be limited coverage for business contents on your home insurance policy. Do you know what that limit is on your policy?  If the property leaves the premises, then you probably won’t have coverage at all.
  3. Because you are you a hairdresser, massage therapist or a personal training, you are considered a professional.   Separate coverage is required for errors and omissions.
  4. Are you using your garage or basement as a shop?  Start a fire?  You may have no coverage for your home or personal belongings.

Check with your home insurance provider.  When you do, there will normally be three responses:

  1. Your home insurance policy can be extended to protect you to some degree.
  2. They may be able to offer a separate business policy or you will have to prove you have coverage with another insurer.
  3. They will ask you to move your insurance elsewhere unless you cease the business operation.

There are also legal and financial issues that need to be addressed.  Reach out to your legal and financial advisors to find out the advantages or disadvantages of incorporating your small business.

Make sure that you take the necessary steps to ensure that you have the protection you need.

For more tips check out Business Insurance for the Entrepreneur

If you want further information please reach out to heather@thinkinsure.ca