Property and liability insurance will be needed for your home cookie business. With some policies your equipment may be insured for its full value by adding a rider to your existing homeowner’s or renter’s policy. Your insurance provider will advise you on the appropriate amount to carry as an additional umbrella policy to cover liability. Keep in mind, it is so important to operate your cookie business legally. If you are not a legal cookie business and operating from home, your insurance policy likely will not cover you as they do not honor claims if the loss occurs within illegal conditions.
If you are starting as a part-time business, disability, health, and life insurance may already be in place through your primary place of employment. As your business expands to a full-time endeavor, insurance coverage may continue in place as part of your benefits. As the business expands, the issue of benefits may be evaluated based on the needs of the qualified staff added to the company.
Again, the types of coverage you should discuss with your agent include:
• General Liability — will cover another person’s bodily injury or their damaged property arising out of the owner’s [in this case, your] negligence. General liability also covers things like a customer taking a fall over your front steps and breaking a leg, or you damaging a client’s property during a delivery. Discuss with your agent the scenario of someone being injured on your premises or becoming sick from your products.
• Business Interruption — is vital for the full-time business owner who faces not only a loss of income, but also the ability to keep up with operating expenses as a result of a catastrophe. This policy will cover expenses such as rent, salaries and utilities.
• Worker’s Compensation — is for the business owner who employs a staff of one or more persons. Mandatory in most states, it provides coverage for medical care, disability income benefits, death benefits and rehabilitation services.
Keep in mind there are many more types of coverage that you should discuss with your insurance provider. I provide a full list in my upcoming book, but this should get you started.