A few weeks ago, a special advertising section in The Wall Street Journal detailed the insurance issues for home-based businesses. The lowdown was that many of these businesses are unaware of — and unprepared for — the unique risks presented by When the economy started its downhill slide a few years ago and unemployment skyrocketed, many of the newly unemployed took their misfortune as an opportunity to start their own business ventures — and most of those ventures were based in their homes.
The National Bureau of Labor Statistics estimates that about 4.6 million people run a home-based business, and a study by IDC cited in the Journal estimates that nearly 2 million more home-based businesses will be created between 2011 and 2015.
It would be logical to think: “Well, I’m working out of my home, so my homeowners insurance should cover any mishaps or accidents.” As it turns out, they’d be wrong.
In the Journal piece, Kevin Lynch, an assistant professor of insurance at The American College in Bryn Mawr, Pa., says, “Homeowners insurance was created to protect against home-based risks, not home-based business risks. If a house burns down or equipment is stolen, you’re apt to find you are sorely underinsured.”
A home-based business owner is also liable for any injuries that occur on the insured’s property. Say you’re an accountant working out of an office in your home and you schedule a delivery of computer equipment for your business and the delivery person is injured. Without either a rider on your homeowners policy or some form of business owners policy, you are likely uninsured, or at least underinsured.
Where does a virtual office service fit into this scenario? A virtual office NYC can help mitigate the exposures presented by visitors to your home. Using YourWallStreetOffice’s 110 Wall Street address for mail and parcel receiving services, you can limit the number of or possibly eliminate visits by delivery personnel to your home. Our office space NYC also gives you an off-premises place to meet your clients without having to worry about the possible insurance risk involved.
Another overlooked expense by home businesses is workers’ compensation insurance. The Journal piece notes that many home-based business owners think they only need workers’ comp if they are running a retail or separate location. Not true, even having an assistant working in or out of the home can open up a business owner to workers’ comp exposures.
One way around that is a YWSO virtual office assistant. Our support professionals can take care of your administrative needs without exposing you to the medical expenses you would face if your own employee were to be injured or fall sick.
Our virtual office services provide you with meeting rooms, office assistants and more, without having to incur the expenses of rent labor and insurance.