Doesn’t my Homeowner’s Insurance Cover my Home Business?
Although homeowners insurance includes personal property coverage to help protect personal belongings, the Insurance Information Institute (III) says that homeowners insurance usually provides minimal coverage for the business property at your home.
All home-based business owners should consider getting insurance coverage because most homeowners’ policies won’t cover business-related claims. If your insurance needs are simple, such as $5,000 to $10,000 of liability and property coverage, you may be able to add coverage with a homeowners policy endorsement. Liability insurance protects you and your business from being liable for damages caused to another person or property.
Why Do I Need More Home-Based Business Insurance?
Here are a few questions to ask yourself to determine if you need more coverage than a homeowners policy would cover:
- Do you own business property that totals over $2,500)?
- Do you ever have clients come to your home?
- Do you store inventory in your home?
- Would your business lose money if your home was damaged?
- Does your homeowners policy exclude business-related claims?
If the answer to any of these questions is “yes”, you need to consider investing in home-based business insurance. You are open to significant monetary loss and some legal issues if you don’t address these concerns.
7 Concerns that Should be Looked Into
1-Endorsement to Your Homeowners Policy
Some insurance companies will add endorsements to your homeowner’s policy to increase the coverage for in-home businesses. In some
cases, you can double the coverage limits. You’ll need to check with your existing insurance company to see what your options are. In most cases, you’ll
likely need to purchase a commercial insurance policy.
2- Business Property Insurance
If your business is storing inventory, developing and manufacturing products, or you own high-end or expensive business equipment, you should consider business property insurance. This covers a wide variety of losses in the event of a fire or natural disaster.
3- General Liability Insurance
General liability insurance will cover claims due to accident or negligence if a third party alleges claims of bodily injury or property damage.
4- Business Interruption Insurance
If your home is damaged and you are unable to operate your business, business interruption coverage can help cover lost of profits, taxes, lost salary, etc.
5- Professional Liability Insurance
It may make sense to explore the need for professional liability or errors and omissions insurance. This insurance covers claims of malpractice,
negligence, or improper advice. It will cover legal costs or settlements.
6- Product Liability Insurance
If you produce a product (oven products, clothing, jewelry, etc.) product liability insurance will cover you if someone becomes ill or injured due to your product.
7-Business owner’s policy
Depending on the insurance company, you can add other endorsements that might be necessary for your particular home business. A business owner’s policy can be another great way to get the coverage you might need at a price that is cost-effective. Speak with the experts to find out.
Can Someone Clarify some of these Concerns for me?
Home-based businesses aren’t exempt from issues that all businesses face. That’s why it’s important to protect your property and your livelihood with the right insurance. To get a free no-hassle home-based business insurance quote, complete the form at the side of the page. OR give us a call at 832-363-1620. One of our experienced agents will gladly help you determine what coverage you need.