Self-employed? At home? Your homeowner’s policy may not cover you.

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Small businesses are the backbone of Canada’s economy and one of its biggest drivers of employment.

Avoid Voiding Your Home Insurance

For sole-proprietors starting out, there’s much more to consider than business registration, building a website, ordering business cards and sourcing the perfect task chair. The Insurance Bureau of Canada alerts home-based self-employed workers that regardless of your business type, failing to notify your home insurance carrier of your business could impact your home insurance.

A homeowner policy is designed to protect your home and risks related to normal activities in and around the home. Coverage for buildings that are used in whole or in part for business purposes are typically excluded from homeowner policies. Rosanne Queen, Manager – Group & Direct Sales advises, “If you are operating a home-based business, tell your insurance company. In many cases, homebased business insurance can be very inexpensive. For example, as little as $75 a year may provide the coverage you need.”

A couple of insurance options includes: 1) adding an endorsement to your homeowner’s policy, or 2) buying a small business insurance policy that is tailored to fit your business’ exact needs. You can speak with one of our experienced insurance advisors about either of these options.

Why Do I Need Home-based Business Insurance?

Protecting Business Assets

Damage to, or loss of, any business-related equipment, products for sale, samples or promotional items stored in your home, or offsite at a client’s office may not be covered by your home contents insurance, unless you have one of the two types of coverage, mentioned above.

Liability risks – at home

Standard home insurance doesn’t cover a client who trips and breaks a leg on your premises. Or, if a client attending a meeting in your home is bitten by your dog, without appropriate business liability insurance, you could end up paying for medical and other costs.

Liability risks – offsite

Self-employed workers who visit clients’ offices for meetings or take on temporary on-site work contracts should be aware of possible liability risks. For example, if your improperly extinguished cigarette starts a fire on a client’s premises, you could be sued.

There are many insurance options to consider whether you are starting or growing a home-based business. Park insurance is here to help you with their business insurance needs—large or small.  Contact us today to discuss your unique needs.

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