Company insurance is intended to safeguard the financial assets of a firm owner and is a vital investment for a home staging business.
This article will discuss the primary insurance coverage for home staging firms, general liability insurance, as well as additional products that are appropriate for this industry.
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Home Staging Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That General Liability Insurance For A Home Staging Business May Cover
Example 1: A client’s house is being staged by an employee. She accidently sucks up the edge of an ancient Persian rug while cleaning the main living room area, and a part of it unravels. Repairing the damage will be exceedingly costly, and the rug may need to be replaced. Your general liability insurance coverage covers damage to your customers’ property caused by your company.
Example 2: A prospective customer comes to your place of business to speak with you about home staging. He stumbles on a piece of ice on his way into your office and falls, breaking his arm. His medical care will most likely be covered by your general liability insurance coverage.
Employees transporting a huge couch into a client’s house for staging fail to see the client’s spouse as they turn a bend outside the residence. They collide with him and knock him to the ground. He suffers a concussion and chooses to sue your company. Your general liability insurance coverage will cover the expense of your legal defence and, if required, a settlement.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical home staging company in the United States pays $400-$700 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Home Staging Businesses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all home staging firms should have include:
Insurance for Commercial Vehicles
A commercial car coverage should cover the vehicles you use mostly for work. If your car is involved in an accident caused by you or your workers, your business auto coverage will cover the damage to your vehicle as well as any other vehicles involved in the collision. It would also cover the medical bills for any vehicle passengers who were harmed in the collision.
Insurance for Professional Liability
Professional liability insurance protects your business if you are found to be responsible for errors or failure to perform. For example, if a customer thinks that your staging work was to blame for bad sales results and sues your company, your professional liability insurance will cover your legal bills.
Coverage Options for Some Home Staging Companies
In addition to the insurance listed above, your home staging firm may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
An umbrella coverage will take over where your general liability policy ends off. If your general liability limits are surpassed, such as if you lose a large case, you may depend on your umbrella insurance to pay after the general liability policy stops paying, up to the umbrella policy’s limitations.
Insurance for Workers’ Compensation
If your company employs people, workers’ compensation insurance will enable you to assist them if they are hurt on the job. It covers job-related injuries, including medical care and lost income if the employee is unable to work while healing.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.