Business Insurance for Home Staging Businesses

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.

Some of the risks general liability insurance covers are:

• Bodily injury
• Property damage
• Medical payments
• Legal defense and judgment
• Personal and advertising injury

While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Check out our review of the Best Small Insurance Companies.

Common Situations That General Liability Insurance May Cover For A Home Staging Business

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Learn more about the risks covered by general liability insurance.

The average home staging business in America spends between $400-$700 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

Several factors will determine the price of your policy. These include your:

• Location
• Deductible
• Number of employees
• Per-occurrence limit
• General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all home staging businesses should obtain:

Commercial Auto Insurance

The automobiles that you use primarily for business should be covered by a commercial auto policy. In the event that your vehicle is involved in an accident caused by you or your employees, your commercial auto policy will pay for the damage to your vehicle and any other vehicles in the accident. It will also pay for the medical care for all vehicle occupants injured by the accident.

Professional Liability Insurance

Professional liability insurance covers your company when you are determined to be liable for mistakes or failure to perform. For example, if a client decides that your staging work was responsible for poor sales results and takes legal action against your business, your professional liability insurance would pay for your legal fees.

In addition to the policies outlined above, there are a few other types of coverage your home staging business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Commercial Umbrella Insurance

An umbrella policy will pick up where your general liability insurance policy leaves off. If you are in a situation where your general liability limits are exceeded, like if you lose a big lawsuit, you can rely on your umbrella policy to pay once the general liability policy stops paying, up to the limits of the umbrella policy.

Workers’ Compensation Insurance

If your business has employees, workers’ comp insurance will allow you to help them if they are injured on the job. It pays for work-related injuries, including medical care for treatment and helping with lost wages if the employee is unable to work while recovering.

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are several things you can do to better protect your business:

• Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
• Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
• Stay up to date with business licensing.
• Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
• If your business is an LLC, look into LLC Insurance.

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

• If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
• After finding the perfect name, get a logo with our Logo Generator.
• Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.