Common Home-based Business Insurance Requirements

Starting a home-based business can provide you with superior flexibility and income potential. When you start a business, you are going to need to be aware of the necessary insurance requirements of your field. Here are a few things that you might need to consider about home-based business insurance requirements.

Liability

One of the most common types of insurance that you may need to purchase is liability insurance. Liability insurance will assure that you are not financially responsible if someone is injured while on your property. This is essential if you have people in your house for business purposes. For example, if you run a daycare from your home, you will need liability insurance to care for any expenses if anyone is injured.

Errors and Omissions

You may also need to purchase errors and omissions insurance. This type of insurance can be essential if you are working with financial information for your clients. For example, if you start a home-based accounting business, this is going to be necessary in order to protect yourself against making mistakes on your client's financial books. If you file a tax return for them and leave something out, you will want to make sure that you have this insurance.