Are you planning to start a home-based business in New York? Before you launch your business it’s important to consider the insurance implications of working from your home, such as home insurance, business insurance and New York workers compensation insurance.
Let’s get the easy part over with first. New York workers’ compensation insurance is mandatory if your business employs one or more workers.
As a business owner you should be considering property and liability coverage for your home business. Property insurance covers business equipment, furniture and inventory that could be stolen by a burglar or lost in a house fire. Liability insurance protects you if a client or customer is hurt while visiting you or suffers harm because of a product you sell or a service you provide.
Home insurance policies provide a limited amount of coverage (typically up to $2,500) for business equipment in your home. A standard home insurance policy is unlikely to cover business liability, accounts receivable if your financial records are lost or damaged, or loss of income if your business is interrupted because of damage to your home.
You have a few options if you want to protect your business; these include adding endorsements to your home insurance policy, purchasing a number of separate business insurance policies, and purchasing a package policy designed for small businesses. You may benefit from consulting an insurance agent to discuss how your insurance needs can be met. Remember to talk to your agent about New York workers compensation insurance coverage if you intend to employ workers in your home business.
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