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Homeowners Insurance and Your Home-Based Business

a home office

Protecting Your At-Home Business

 

Do you work from home a few days a week? Are you a budding entrepreneur working out of a home office? If so, you may not be aware that you are missing valuable insurance coverage to protect your business endeavors. Most people who own a home carry a home insurance policy. However, very few home-based business owners have coverage for their business. Since home insurance often excludes home businesses, it’s important to secure your livelihood with additional protection.

 

What home insurance won’t cover

Take a look at your home insurance policy to find out whether there are business related exclusions. If you run a business out of your home, then you may need to secure a commercial insurance policy. If your home includes an office, you’ll find that your home policy provides limited coverage to property and liability. As such, you may not have enough coverage to fully protect yourself.

 

Safeguarding your business

To insure your business, you have three basic choices:

  • Homeowners policy endorsement – Add a simple endorsement to your existing home policy to double your standard coverage for business equipment such as computers. You’re also able to buy a homeowner’s liability endorsement.
  • In-home business policy – These policies vary depending on the insurer. Most will reimburse you for the loss of important papers and records. Some will pay for the income you lose in the event your home is badly damaged by a fire or other disaster. These policies generally include broader liability insurance for higher amounts of coverage.
  • Business owner’s policy (BOP) – Created specifically for small-to-midsize businesses, this policy is an excellent solution if your home-based business operates in more than one location. This policy covers business property, equipment, loss of income, extra expense, and liability.

 

Talk to your insurer about your home-based business to understand what coverage you need. Insurance doesn’t have to be hard to find. When you need to find coverage to suit your budget, talk to the professionals at Humble & Davenport Insurance today.