A side business is a great way to supplement your income, pursue your passions, or build a foundation for a future full-time venture. However, it's important to be aware of the risks involved before you take the plunge.
There are a number of potential risks associated with side businesses, including legal liability, property damage or theft, business interruption, vehicle accidents, death or disability of a key employee, natural disasters, and hackers and technological issues.
Some Side Business Risks:
There are numerous risks that accompany a side business. Be aware of these possibilities if you plan to start a side business of any kind.
- Legal Liability: You are liable for injuries to employees, customers, or vendors that occur on the company premises or off as a result of the company's negligence. A business is also liable for product-related problems or injuries to your products users or their children.
- Property Damage: Any business can sustain property damage, whether it is due to burglary, a fire, an accident, severe weather, or vandalism.
- Business Interruption: If a business suffers a loss, such as property damage, it may be forced to shut down for a period of time. Unless there is insurance to cover business interruption, this break in income can be financially catastrophic.
- Company Vehicle: A business vehicle is vulnerable to damage and destruction, and many businesses require at least one vehicle in order to operate. Your use of your personal vehicle for your business may void your liability and property protection. Talk with your agent.
- Death or Disability of Key Employees: Some experts argue that the most valuable assets to any business are its employees; without them, the business cannot function. Any health issues or deaths can significantly compromise a business.
- Natural Disaster: Natural disasters can cause property damage, injuries or deaths to employees, severe loss of client base, and many other misfortunes that can effectively ruin a business.
- Hackers and Technological Issues: Many businesses are heavily reliant on technology to function, but hackers, viruses, and other issues can seriously disrupt their Internet presence.If you have a website, use e-mail or accept payments (especially electronic payments) you are at risk.
Insurance Coverage for Side Businesses
The good news is that all of these risks can be covered with the right kind of insurance policy or possibly an endorsement to your homeowners policy. T
If you're thinking about starting a side business, be sure to do your research, talk with your Yennie & Jones agent and invest in adequate insurance coverage. This will give you peace of mind and help you to protect both you and your business from financial ruin in the event of an unexpected event.
For all of your business insurance questions, call or contact Yennie & Jones Insurance Agency today.
