Do other homebased webmasters/designers have business insurance?

I'm especially interested in those operating in Canada

[Sari]

This may seem like a weird question, but it's something that has been bugging me for some time now....

When I was thinking of starting my homebased web design/consulting business, my husband mentioned it casually to our insurance agent that I was thinking about it and our home insurance was cancelled!

So we switched companies (and didn't mention the business), but I still worry that if something should happen and they find out that I run my business from home, that we could be SOL.

Besides, as I'm a sole propietor I keep reading that I should have liablity insurance and extra insurance on my computer equipment.

What do the rest of you do? Are most homebased designers operating without insurance?

Thanks for the input!

[chicagohh]

Are most homebased designers operating without insurance?

No, I would guess that most people that have been doing it for a while have insurance. You really should have a business policy. At least liability coverage. What happens if a client sues you claiming you dorked up their site and they are now losing $1000 a day? What if someone breaks into your house and steals your computers/software/stock etc?

My business insurance is with the same company that has my homeowners policy and auto policy...

[Sari]

I agree with you Chicagohh that having a business policy would be ideal. But as soon as the insurance company finds out I'm operating out of my home, they cancel my home insurance. Last time they mentioned something about no one being willing to underwrite web businesses.

How did you get around this? (Short of renting office space?)

Is there some trick, or magic phrase that I need to throw at them to get the business insurance that I need while maintaining my home insurance?

[chicagohh]

There is nothing to get around. You are self-employed and need liability insurance and maybe some additional coverage for your business property. I solicited 2 quotes from my long time insurance provider and from a second one that was recommended by the real estate agent.
Neither insurance company seemed to have a problem. It was all very standard.

I chose to go with State Farm.

[iamlost]

Yes you should have business insurance.

For a dicussion of various types that might be needed:
[webmasterworld.com ]

I suggest you contact two or three local independant insurance brokers (look in yellow pages) and meet to discuss your needs and request two or three detailed quotes from each. Then have them explain (in simple terms) what is good and bad in each and the differences between them and the companies offering them.

Remember that these are the pushiest of sales types so only meet in their office, take info away to read and discuss (with husband?) and do not allow them to stampede you. Take your time and make an informed decision.

Note: you may get a better rate if you place all your home/auto/business insurance with one carrier. Something to ask and get price differences on.

I work from home in Canada and have no problem with insurance of any kind (other than the premiums!).

[Sari]

Thanks to both of you! This has been very helpful!

I guess I'm still a little "gun shy" after having my house insurance cancelled without warning for just mentioning that I was considering starting a homebased web design business.

I will take your advice and go to some independant brokers and see what happens.

iamlost, would you mind sending me a sticky mail with the name of the insurance company you're with? Thanks again!