Starting your own business is always risky, at the same time it is exciting. Despite the amount of competition out there in seemingly every market, adventurous entrepreneurs are willing to take the risks and try to reap the potentially vast rewards. This is admirable, however where a number of startup companies go wrong is they fail to make sure their businesses are adequately covered against unexpected risks that could have devastating effects. In fact, a worrying amount of new businesses owners still assume they’re simply covered under their standard home insurance policies. That is simply not true. Here’s what you need to know about business insurance.
When Home Insurance Won’t Cut It
While it’s not uncommon for home insurance providers to also include protection for business owners that are based out of home, basic coverage often restricts claims of any meaningful value. They also omit beneficial features such as protection against damage that occurs on business trips or any defense against potential liability claims. If your company requires some high-end technological equipment, or you keep your product inventory at your home, you’ll see that even a small startup can quickly start to amass value that runs into the tens of thousands.
