Home Based Businesses and Lawsuits
Not all home-based businesses need business insurance. However, if you have a home-based business, consider seeing a personal injury attorney to ensure you are not vulnerable to lawsuits. While your insurance agent might be knowledgeable about coverage, you might not get the best answer about potential lawsuits unless you speak to a legal professional.
An independent graphic designer who only conducts business over the phone is unlikely to be sued with personal injury claim.
Don’t count on your homeowner’s insurance policy to cover an accident that occurs at your home if you are conducting business while the accident happens. While you might be able to include a home-based business clause for a small premium increase, most basic policies won’t cover such accidents. If your client falls while visiting you at your home, you may be fully responsible for all medical costs and lost wages.
A significant number of network marketing businesses (Avon, Partylite) conduct business both at the business owner’s home and at the client’s’ home. Once the Avon make-over party gets started at the client’s house, it becomes a place of business. One slip of an eyeliner pencil could mean an expensive lawsuit for you.
The same is true for driving while on a business errand. If an insurance company can prove that you were on the way home from a business meeting when a car accident occurred, your auto insurance policy will likely not pay out for any damages.
The best defense is a strong offense. If you meet with clients at home, drive as part of your business, or conduct sales on site, you are vulnerable to lawsuits. Contact a personal injury lawyer to help you determine the exact kind of coverage you need to avoid costly lawsuits.