For business owners who operate out of their home, it is a common mistake to assume that homeowner's insurance will protect all assets associated with the company. Just because craftspeople use their house as a base for an organization, does not mean that there is one blanket policy that will cover both residential and commercial property.
Let's say that you believe you have thought of everything. You have developed your manufacturing skills and fine-tuned your mind for business. Taxes, booth design and setup, product guarantees and wholesale distributors have all been covered. However, what about your insurance?
For example, if you invite a customer to your home, what if they slip and fall on the ice on your front stoop? Unless you are licensed to not only operate out of your house, but have a general liability policy in place, heavy fines could be heading in your direction.
Additionally, what about your vehicle? Commercial auto insurance is not the same as a personal automobile policy. Craft businesses are often required to be on the road, which is why it is crucial for owners to work with commercial insurance specialists who can help them find coverage that account for the company.
Another important aspect for craftspeople to consider is the state of their tools. Insurance policies for tools are very necessary, especially for more expensive items. Fires and floods that occur at the home could damage stored equipment and, in all likelihood, a home insurance policy will not cover such losses.
Finding the right insurance for your craft businesses could create many questions, which is a good thing. Niche companies must guarantee that they are covered for numerous situations, just like any large brick and mortar store.
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