There are undoubtedly many benefits associated with home-based businesses, like not having to commute and being able to take care of household chores while you work. Many entrepreneurs and home-based business owners also love the flexibility of working from anywhere, not just in their homes.
However, for all the advantages of home-based businesses, there are a few risks to be aware of. Learning these might help you put steps in place to avoid them.
Lawsuits
The average slip and fall attorney meets with many people who have experienced slips and falls on other people’s property and sustained severe injuries. Business owners might not have meant for the accidents to happen, but they can significantly impact the victims’ lives.
Lawsuits might be the last thing on your mind when you welcome your clients into your home for business meetings, but they can be worth thinking about. If employees, customers, or vendors trip and hurt themselves in your home, they may seek legal action to be compensated for their costs. You might also strike legal trouble if you’ve accidentally sold a defective or unsafe product, made false claims about your offerings, or breached a contract.
Liability insurance can provide a much-needed form of protection, but it’s not the only action you can take when you start a business from home. You might also review your business from a risk perspective. This might involve clearing trip hazards from your front entrance and removing any ‘risky’ marketing content from your website.
Injuries and Illnesses
Customer injuries aren’t the only risk you need to think about. Your own injuries and illnesses are also possible risks a home-based business can face. If you’re a solopreneur with no one else to fall back on, being out of action can have a costly impact on your business.
When you’re not able to work, you can’t earn money. Without income, you might be unable to cover your everyday bills and business taxes. Having a backup plan in such a situation can be crucial.
That backup plan might be employing a staff member and teaching them how your business operates if you have enough work to accommodate a second person. Alternatively, you might explore insurance options like business income coverage.
Property Damage
It’s not just your home you have to worry about in a damaging event like a storm, flood, or fire. Your home is also your business property. As a result, your business is also impacted if you lose your house or it sustains damage.
You may not be able to prevent a natural disaster or an accident like a fire, but you can implement a plan to limit the impact. For example, you might create a list of your business assets, including their values, and back up all your files onto a cloud-based server. If you have original, important documents, consider keeping them in a storage unit or a separate structure away from your home.
Home-based businesses are undoubtedly convenient, but they’re not risk-free. By being aware of the most common risks, you might be better positioned to avoid them.
