Liability Insurance for Your Home Business

When you own your own business, there is always the possibility of causing harm to someone else, and unless you are prepared to face this reality, there remains the chance that everything you own can be wiped out in a heartbeat. Sole proprietor businesses, typically the category in which a home business falls, are especially susceptible to causing the owner to lose not only the business assets, but their personal assets as well, if you are on the losing end of a liability claim.

Liability claims can be for personal injury as well as property damage, and many businesses find that claims filed against them--even if they win a court claim--can be costly. In today’s litigious society, anyone can file a lawsuit claiming to have been wronged, and defending yourself against these claims can be expensive, especially if you and your business lack liability insurance.

Working from home or working at  home can leave you open for different types of claims. For example, if you work from home providing a service to others at their home or business, you could damage their home or property leading to a claim for those damages. Many types of business insurance are available that include the cost of legal fees to help protect you and your business from devastating losses.

Doctors and other medical professionals have found that the need for malpractice insurance takes a big chunk from their earnings. Plumbers and electricians know that if they burn down a customer’s home, they will responsible for replacing it, as well as its content and temporary housing; and thus they carry enough liability insurance to cover such losses.

Consider the type of business you operate and the type of claims that may be filed against you and you might see the need to insure yourself against loss. Even freelance writers and photographers run a risk of being accused of plagiarism and it’s hard to put a price on “stealing” someone else’s intellectual property.

Putting your business name on your vehicle as a means of advertising opens a whole new potential for liability claims. Many feel that because you own a business you have "deep pockets" and they may be quick to file suit against you, just for the money. You will also pay more for vehicle insurance if your use your vehicle for business--and if you are in an accident without this type of insurance, your carrier may deny any claims.

If you invite customers or clients into your home, your homeowner’s insurance will also need special business-use carriers to protect yourself against any potential injuries occurring on your property. Even cutting the grass on your yard can cause problems if your mower kicks up an object that damages someone else’s property or causes an injury.

Talk to your insurance agent to determine the type and amount of insurance you may need to protect your personal assets as well as business assets from claims by customers and clients. You should also make sure that all projects you take on are covered by a contract spelling out your responsibilities as well as the customer’s responsibilities to help protect you from any claims. Again, even if you win a suit in court, legal fees can take a huge bite out of your bank account.

This article originally appeared at www.Factoidz.com written by the same author