Why Would I Need Business Insurance If I Don’t Have a Storefront or Inventory?

Why Would I Need Business Insurance If I Don’t Have a Storefront or Inventory?

Today, more and more businesses are operating nearly completely virtually. They may have a small office or even a home office. There may be no on-site inventory or employees. Many companies just deal in services, information or consulting. This can lead to minimal expenses in labor, rent, storage and utilities. It will not however, eliminate the need for business insurance. Here are some reasons why.

Home Owners’ Insurance Will Not Protect Home-Based Businesses

A home-based business is still a business. This means your homeowners’ insurance may not cover business equipment, furniture, electronics or even provide protection in a liability claim. Home-based business insurance can be very affordable. It is not worth the risk of going without.

Even a Small Rented Office Increases Your Risk

If you conduct business out of a small, leased space your risk of being subject to a liability claim increases. If you are meeting with clients, customers or vendors on space you control, you could be held liable for any injuries that occur in that space.

Responsibility for the Actions of Your Employees

Whether you have a storefront or not, you are still responsible for the actions of your employees while they conduct business-related activities. They may be conducted off-site or in the homes of customers where you can be held liable.

Your Business Activities Could Be Interrupted

Business interruption insurance can protect your income should there be a covered claim that shuts your business down.

This could be a fire or other natural disaster.

Errors or Omissions Coverage

If you offer professional services like financial, legal or medical advice, you could still be held accountable for malpractice or errors and omissions whether you have a physical location for your business or not.

Businesses are becoming increasingly unique in how they conduct business. Video conferencing, remote workers, social distancing and work from home strategies are becoming increasing popular and accepted. These changes may alter some of the coverage you need as a business owner but you will still have risks. Our independent business insurance agents will be glad to discuss your evolving situation. Contact us today for a business insurance review and quote. You may be surprised at just how affordable a custom business insurance plan can be.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Search All Blogs

Generic filters

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Generic filters

Read More Blogs

Six Men Who Captured Hearts: Universally Loved Figures in American Culture

Explore six beloved men in American popular culture.

The Uninsured Gap: Why Small Businesses Are Missing Crucial Protection

Why small businesses need more insurance.

Beyond “How Was Your Day?”: Engaging Your Kids with Deeper Questions

Get your kids talking with these open-ended questions.

The Rise and Fall (and Possible Return?) of the American Minivan

The minivan’s journey: from family icon to potential comeback.

Out with the Old: 7 Home Upgrades That Pay You Back

Upgrade these 7 outdated home features now.

America’s Linked Cities: Six Communities Forever Entwined

Discover America’s famously linked cities.

Navigating Price Increases: How to Retain Customers During Inflationary Times

Retain customers during price increases with these tips.

Beyond the List: What Your Bucket List Really Says About You

The hidden meaning and power of your bucket list.

Taking the Wheel: How You Control Your Car Insurance Costs

Control your car insurance costs with these tips.

Beyond the Walls: Maximizing Your Home’s Outdoor Living Potential

Unlock your home’s outdoor living potential.