May I suggest you call several different insurance companies and get their input on what criteria must be met to qualify for general liability?
Last year, I did some research to help some of my clients with insurance needs and discovered there are many types of insurance that may apply to a home business owner.
I`ll list a few here to help anyone who might be looking into insurance needs ...
1. Key person insurance - covers loss of revenue when principle of business is unable to function in normal business capacity.
2. Product liability insurance - protects you from liability for product non-performance. If a client is unhappy with the non-performance of a product and they file a claim against you, you are protected.
3. Professional liability insurance - (for service providers). If a client claims that he or she suffered as a result of your actions, you are covered and the client is compensated.
4. Malpractice insurance - is for anyone who performs any kind of treatment, including dog bathing and hair styling. (Not just for doctors anymore.) This could actually apply if you give someone a haircut they hate and they file a malpractice suit against you.
5. Errors and omissions insurance - for anyone who gives professional advice for a living. If you give advice and a client states your advice is inadequate and they suffered as a result of taking it, this insurance will cover the damages.
6. Business interruption insurance - covers any lost revenues due to natural disaster including fire, flood or storm.
I am by no means an insurance expert and recommend every entrepreneur speak to a qualified insurance agent before making these types of decisions.
Hi...I`ve worked at home for over 20 years in a business that I started from scratch - what is do is quite simple: I teach other people how to start and operate their own home-based business. It is not an "opportunity" to start a "successful and most lucrative" business....it is a concrete, practical, step-by-step guide on how to take that idea you have about running your own business and turning it into a reality. I`ve been teaching at local colleges, on the Extension Program level; I have an online, nationwide course on the same subject and most recently I have produced a DVD that takes you from A to Z on How To Start and Operate Your Own Home-Based Business....visit the website: www.thehome-office.com for more information.
Re: Insurance....I would start with making a list of what it is you want to insure: equipment and inventory, liabiltiy in making poor judgement calls, a client in your home that might trip, you falling in a client`s home, having a client`s files or products in your car and your car gets stolen, loss of business due to illness or other disability, earthquake, flood, etc.... It is important to know the value of each of these items; discuss them thoroughly with a knowledgeable insurance broker; get a second opinion. Start with your Homeowner`s Insurance Policy - most do not cover the business aspect of your home, so you will need to get a rider and/or a new, separate policy for your office and any other storage area you may be using for your items. Talk to other home-based business owners too. The more you know, the better your decision will be. I do my research online, but I definitely talk to a representative on the phone before I actually buy something. Hope you do great, Helene