Do you have a home-based business? You’re not alone, more than half of U.S. businesses are home-based. Whether you’re doing web design, teaching music, doing medical billing, running a daycare center, or any other kind of work from home, you need insurance that covers the additional risks you’re exposed to. Here’s what you need to know about home-based business insurance.
Yes and no. Most people think their homeowner’s insurance policy is all the coverage they need, but a typical homeowner’s policy may not provide enough coverage. The usual limit for your business equipment while at home is $2,500 and $250 when it’s off the premises.
Homeowner’s policies also tend to exclude business liabilities. Even if your home business is only you working part-time, there’s still the chance for situations where you’re at risk for liability. One such situation arises when somebody comes to your home for a business purpose such as an appointment, gets hurt while on your property, and thinks it’s your fault. Your homeowner’s policy probably wouldn’t provide coverage to pay for the damages.
There are three ways to get additional property and liability insurance for your home-based business, an endorsement to your homeowner’s policy, an in-home business insurance policy, or a business owner’s policy. The coverage you’ll need depends on the type of business you do, how much money it makes, and the amount of coverage you need. Here are explanations of the three ways to get the coverage you need:
Beyond these, there are additional types of business insurance you may need to consider depending on your situation. A couple of coverage types to think about are:
Running a business out of your home can be fun and rewarding but it also exposes you to additional risks that could be costly if you don’t have the right insurance coverage. If you have a home-based business get in touch with us so that we can help you make sure you’ve got the coverage you need.