Many people are starting their SOHO businesses without having the proper legal structure in place which can come back to haunt them in the long run.
Most business owners that operate out of their home forget that they are a viable business entity and might need insurance to cover property and liability concerning their business. Most owners don’t take into consideration damages that could happen to equipment or data if disasters, such as fire, water or theft happens.
You may need to update your insurance policy to include a rider that will cover business operations so that if anything happens, the business is covered, especially when it comes to data processing and storing a customer’s data at your home. If you have confidential files, you might want to create the extra security methods to store those files so that if something happens, the insurance will cover you and not hold you negligent in a court of law.