How to Insure Your Side Business

A side business is a great way to make extra money or pursue your passion before building it into a full-time career. If you are considering starting a side business or are already successful in an endeavor, it is essential to consider your insurance coverage. Depending on your product or service, you may need various types of coverage. Here are some pointers to protect yourself from losses associated with your side business.

Do Your Research

When you start providing products or services from home, you may be dealing with more risk than what is covered by your personal insurance. To see what type of insurance you will need to cover your side business operations, you must answer some questions to determine what is really at risk. These can include:

• Do you have valuable inventory in your home, garage, or storage area?
• Are you being entrusted with sensitive data, such as credit card numbers or Personally Identifiable Information? Is this data stored on a personal laptop or computer?
• Are you or a business partner using a personal car to perform company business?
• Are you dealing with food or edible substances that could potentially make a customer ill?
• Are you caring for children or animals as part of your work?

All these and more can help you determine what areas of the business are most valuable and what could be at risk should anything go wrong. Some types of insurance that could be appropriate include the following: 

• General Liability Insurance: The most common type of business insurance is general liability insurance, which covers your business’s main risks, such as employee injuries, property damage, and inventory loss. Be sure that any general liability policy is tailored to your business. 
• Commercial Property Insurance: This covers repairing or replacing damaged buildings, equipment, and inventory, ensuring you can rebuild after a disaster.
• Commercial Auto Insurance: The primary vehicle used for your work will be covered for damage and repairs. 
• Business Interruption Insurance: If unforeseen consequences cause you to temporarily halt operations, this coverage can help replace lost income and cover expenses.
• Cyber Threat Insurance: As more businesses go digital, hackers have become a serious threat to operations. Insuring yourself against cyber-attacks can help protect against losses from data breaches or website shutdowns. 

Talk to a Licensed Insurance Agent

Get the assistance you need from a licensed insurance agent who can explain the business insurance options available to you. Our insurance agents are more than happy to answer any questions you may have regarding your coverage. Have the agent prepare a few scenarios or options so you are not left with a yes or no proposition.

Compare Policy Options

As needed, take your time to review each of the available coverage options and decide which one provides the best coverage for you based on your unique business needs. Various issues to consider when choosing a policy include the following: 

• Costs
• Benefits received
• Longevity and financial stability of the provider
• Quality of service
• Personal peace of mind

Choose Your Policy

Once you have chosen the right policy for you, give our independent agency a call. Our friendly agents can ensure the proper paperwork is completed. The date your coverage starts is usually consistent with your first payment and will be listed on your copy of the insurance policy. Be sure to keep your policy in a safe location that can be easily accessed in an emergency.