Most people are aware that they will need to purchase business insurance when choosing to open up a traditional brick-and-mortar business location. Unfortunately, many of these same people overlook the need for business insurance when choosing to operate a business out of their homes. If you are currently running a home business or plan to open one in the near future, you should know that there are several reasons you should purchase business insurance despite not having a dedicated business location. You can learn more about these reasons below.

Reason #1: Home Insurance Policies Traditionally Exclude Home Businesses

Just because your business may be located inside your home does not mean that your home insurance policy will cover this business. In fact, most home insurance policies will expressly exclude coverage for any home business supplies. Consequently, you will not be able to count on this type of insurance coverage to protect you in the event that office supplies, inventory, or other business-related items are damaged or stolen. The only way to get this protection is to purchase business insurance specifically for your home business. 

Reason #2: Your Business Can Be Financially Ruined If A Customer Or Client Is Injured And You Do Not Have Insurance

If you have customers or clients visit your home for business purposes, you should know that your business could be held liable if any of these individuals are injured on your property. You could also be held liable if a customer is injured while using a product that you made or sold. While most injury claims can be easily settled through the insurance company, the cost of covering these damages on your own could be financially devastating to your business. That is why it is so important for even home businesses to carry business liability insurance coverage. 

Reason #3: Business Insurance Allows You To Protect Your Personal Investment

Even if your home-based business operates on a very small scale, you are sure to have made a personal investment in getting this business up and running. If anything were to happen that endangers the financial stability of your business, you could potentially lose the entire investment which you have made in the business. For instance, if your inventory is destroyed in a flood, you could lose all of the money you invested in obtaining this inventory. Choosing to purchase business insurance for your home business will allow you to protect yourself against this type of loss. Consequently, not only will this insurance coverage help to protect your business finances, but your personal finances as well.

For more information, contact a business insurance provider in your area such as Colston Insurance Agency.