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Does Your Etsy Business Need Insurance?
Here’s a look at the most common types of coverage for home-based Etsy sellers and what make sense for your home business.
One reason Etsy sellers don’t insure their home business is because of confusion over what may be already be covered by their homeowner’s or renter’s insurance policy. However, Etsy sellers like most home-business owners have little or no coverage from their homeowner’s policy. Even more, if you file a homeowner’s claim for losses sustained by a previously undisclosed home-based business, your insurer may refuse to cover it or cancel your policy. The best case scenario is you might receive a small reimbursement.
“Home based business owners don’t realize that when the FedEx delivery man arrives to your doorstep with a business package and accidently slips and hurts himself while delivering, your homeowner’s policy will not cover that,” says Kevin Watts of Pacific Security Insurance in Riverside, CA.
If you’re conducting business at home, you’d be smart to have a policy in palce to cover your business. Your business sales don’t matter, but the amount of loss you could potentially face is what needs to be considered.
So how can a home-based Etsy seller protect their business? First you need to start by insuring your business correctly. You have options. Here are three basic types of business insurance to consider:
Adding a rider to an exsisting homeowner’s or renter’s insurance policy:
An add-on or rider expands a homeowner’s or renter’s policy to cover the company.
Obtaining an In-home business policy:
An in-home policy will cover a broader spectrum of contingencies, including loss of critical documents or theft of funds.
Purchasing a business owner’s policy:
Those who need more than $10,000 of coverage should consider a business owner’s policy. This comprehensive policy is what most brick-and-mortar retailers use.