Home-based Business: Why You Want Commercial Insurance

If you run a business from home, you need the right amount of insurance, and also the right type of insurance to ensure you’re properly covered for your unique needs.
Home-Based Business: Why you want Commercial Insurance | CM Connect Blog

Home-Based Business: Why you want Commercial Insurance

Many people have asked us at Crystal Metz Insurance, what exactly is Commercial Insurance, how does it work and do I need it? 

We’ll be showcasing specific situations where you would need commercial coverage, and more importantly, why you want it.

If you run a business from your home, you need the right amount of insurance, and also the right type of insurance to ensure you’re properly covered for your unique needs. 

Here’s an example of a home-based business:
Home-Based Business:  Why you want Commercial Insurance
THE SITUATION                          

Susie is a 45-year mom of two high-school aged children. She’s been recently widowed and now runs a bookkeeping and accounting service from her home. She often has clients stop by her home office, but will visit them at their businesses as well. 


Home-Based Business:  Why you want Commercial Insurance
THE INCIDENT

While at a meeting with one of her clients, Susie notices that her laptop charger has been recently chewed by her cat. She makes a note to herself to purchase a new one after their meeting is over. She plugs the laptop into a charger near the window and starts reviewing numbers with her clients. Within a few short minutes there is short and the curtain windows catch fire. 


Home-Based Business:  Why you want Commercial Insurance
THE DAMAGE 

The fire quickly spreads and ultimately, $65,000 of damage is caused to her client’s building. In an attempt to pull the charger and deter the fire, Susie burns both of her hands and requires surgery to repair the damage. She will also need several months of protective coverings over her hands which means she cannot type, therefore unable to run her business.


Home-Based Business:  Why you want Commercial Insurance
THE INSURANCE

Thankfully, Susie had both Commercial Liability and Disability insurance policies.  


Her Commercial Liability coverage will cover the damage to the client’s business, even though the fire was caused by her negligence (knowing the cord was chewed and not replacing it early enough). The policy will also replace the laptop that was destroyed during the fire. 


Because this type of coverage will not cover Susie’s loss of income, she was advised to also take out a Disability policy. This coverage will provide her with a monthly tax-free benefit to replace the income she lost while unable to work. 


Home-Based Business:  Why you want Commercial Insurance
WHAT COULD HAVE HAPPENED (if she didn’t have Liability and Disability insurance)

Susie would have been held responsible for the fire in her client’s office, whether she had coverage or not. This would have put her in severe debt that she would not have been able to repay, nor work to make back. With no income coming in and no way to repay the damages, Susie would have found herself in a very difficult physical, emotional and financial situation for both her and her children.  



Which type of insurance coverage do you need? 
We can make sure you have the right amount of insurance coverage for your specific situation and industry, no more, no less. In the unfortunate event that something were to happen, the proper insurance will ensure you won’t be adding a financial burden to you or your family.
Let the Crystal Metz Insurance team help advise you on what will work best for your business insurance needs. We are here to connect the dots for all your insurance needs.


Home-Based Business:  Why you want Commercial Insurance