On Google, someone asked in one of the groups if he needed insurance for his home-based computer consulting business. His thought was that he would not have clients come to him, but rather he would go to them. Therefore, he thought insurance was not necessary.
A computer consultant definitely needs insurance. Here are a couple of examples where insurance would be helpful:
- You go to a customer's house to fix their computer and you drop their LCD monitor. Of course, you drop it on their wood floor and the floor is damaged as well. If you have a commercial general liability insurance policy, they will pay for all of the damage.
- You go to a customer's house to fix their computer and you erase all of the data. There is no back up. And the data is not just pictures of the kids, but the homeowners own home based business data. Now they have to pay someone to recreate the data. Again, insurance would cover this.
Okay, so you do not have a home based computer consulting business. Would insurance still benefit you? Yes.
- You own a home based business selling items on Ebay. You sell "It" (which is what it looks like Ebay wants to sell these days, based on their ad). "It" arrives at the customers house and "it" is broken. The customer opens the package and cuts a finger - badly. An insurance policy would cover you if you are asked to pay the medical bills or sued.
- You own a home based marketing business. A CPA hires you to do a mailing. You make a mistake on the mailing and the CPA is sued for violating his ethical obligations. The CPA turns around and sues you. Your insurance policy would defend you.
My point: An insurance policy is necessary for most small businesses. You should consider getting one - especially for the low cost.