The freedom of running your own business from home is an attractive option that more and more people in Springfield are choosing every day. One thing that can be easily overlooked is the need to consider small business insurance -- and the consequences that working from home can have for your household insurance.
Small Business Insurance For Your Springfield Home
Springfield Household Policies
In some cases, the simple fact that you work from home could invalidate your insurance policy, even if any claim you make has nothing to do with your work. Usually clerical work (such as writing, accountancy and similar computer-based tasks) is OK, but you should check the terms of your policy. With other types of work, you may still be able to get home insurance, but you will need to detail this with the insurer and your premiums could increase.
If you are covered by household insurance, make sure you keep your policy up-to-date to cover any equipment you use for business. Expensive laptops could affect both your total cover limit and your limit on individual items.
Another reason you might need specialist small business insurance above and beyond your ordinary householder policy is if you keep stock on the premises. That's not just because having the stock increases your potential losses. It can also increase risks -- by making your home more attractive to burglars, for example.
Some lawyers argue that people running a business at home encounter liability issues as soon as they start accepting deliveries. That might be a tight interpretation of the law, but you do need to consider liability as soon as you start having clients visit your premises. This should cover the risks of injury to the person visiting, along with the risk of damage to their property. The legal situation varies from state to state. For example, a Springfield small business owner is not legally required to have liability insurance under Massachusetts state law, though of course that doesn't mean it's not a good idea to have it anyway.
In principle, an insurance premium related to your business meets the IRS threshold of "ordinary and necessary" so is acceptable as a tax-deductible expense. Remember that something that gives you benefits for both personal and business use, such as a household insurance policy that covers some business equipment, is only partly tax-deductible. Consider getting expert advice on how you can determine the deductible proportion of your premiums.
Specialist Small Business Insurance
While some Springfield homeworkers will find their household policy sufficient, others will need specialist small business insurance. A common option is a business owner's policy, which combines both liability insurance and property insurance.