Do you run business operations from home
or have a pastime that earns income?
Proper insurance coverage can protect you in the event of a hardship that threatens your business. Whether valuable equipment is damaged or a dissatisfied customer claims breach of contract, insurance can help cover legal fees, medical costs and other related expenses.
Unfortunately, many home-based businesses do not realize the importance of insurance until it’s too late. To anticipate these scenarios before they negatively impact your company, consider home-based business insurance.
A homeowner’s policy typically excludes businesses run out of the home. Homeowner’s may fall short in the event your business laptop is stolen while you’re traveling or a customer visiting your home for business reasons slips and falls outside. With these factors in mind, where should you start?
Risks of Home-Based Businesses
Home-based businesses can protect their physical assets, anticipate customer disputes and legal action with our comprehensive insurance programs.
Be prepared with protection for scenarios like the following:
- A fire in your home destroys or damages your inventory.
- You are working a trade show and someone trips and falls over your display.
- Any business equipment gets stolen or damaged.
- Files and data containing client information or company secrets are hacked.
- Customers, clients or competitors file any legal claims.
Do You Need Home-Based Business Insurance?
If you can answer “yes” to any of the following statements, you’ll likely benefit from commercial coverage:
- Customers or clients come to my home for meetings or a service I provide.
- I store inventory and supplies on my premises.
- Damage to my home or its contents would impact my business.
- Certain computers and equipment are strictly for business use.
- I charge a fee for my services.
- My business generates enough income to partially or fully support my household.
Which types of businesses typically need coverage? A variety of service areas like accounting, bookkeeping, appraisals, electronic repair and more.
Types of Home-Based Business Insurance
There is no one-size-fits-all insurance solution for home-based businesses. Your carrier will tailor a policy to your business size and specific needs. Coverage encompasses much of the full commercial spectrum, including:
- Business Owners’ Policy (BOP): This three-in-one policy includes general liability, business income and commercial property for a single cost. Endorsements, including data breach coverage, can further address the specific needs and services of your business.
- General Liability: By itself or as part of a BOP, general liability assists with claims related to customer injuries, damage to property, slander and libel. Few businesses will work with you without general liability insurance.
- Professional Liability: This policy factors in any complaints and subsequent lawsuits concerning the work and services you provide.
- Commercial Property: Your homeowner’s insurance may have certain restrictions based on specified perils and usage. For business equipment, commercial property assists with replacements and repairs related to theft, vandalism and certain natural disasters. Beyond your building and its equipment, coverage typically extends to your inventory.
- Business Income: Situations out of your control could temporarily halt operations. Business income helps you through these unexpected times, without deeply impacting profits.
Contact us today for a quote!