With COVID restrictions forcing millions of small business to work from home, home business policy questions are on the rise.
What should you know about running a business from your home?
Your homeowners insurance may not include protection for your business’s property including:
- Professional equipment
Self-employed professionals should consider home based business insurance to protect their business assets.
You should also be careful if you’re using your home for activities that your home insurer isn’t aware of. This may nullify your homeowner’s personal liability coverage. One example of this could be operating a home-based business. This puts both your home and business at risk.
Do I Need Home Business Insurance?
For all the home-based business owners out there, you need to ask yourselves a few essential questions including:
- Do customers or clients come to my home?
- Do I keep inventory or supplies in my home or at off-site job locations?
- Would I lose income if I had to close my business because of damage to my home?
- Do I have employees working in or outside of my home?
- Do I maintain client or employee records on my computer?
If you answered “yes” to any of these questions, you may want to review your type of coverage and coverage limits. In this case, home liability insurance might not provide enough protection for your home-based business.
Without the right coverage, your business could be responsible to pay out of pocket for:
- Property damage
- Employee injuries
- Issues related to data loss
Home Business Insurance Solutions Include
General Liability Insurance – helps protect you if you’re sued for a variety of reasons. These can include negligence, personal injury or a faulty product. If you don’t have inventory or equipment in your home or at off-site locations you may want a basic general liability policy.
A Business Owner’s Policy – helps cover structures on your property where your home-based business operates. It can also help cover damage to inventory or loss of income if your home suffers damages. For instance, say your home gets damaged by fire or high winds. Your business owner’s policy can help cover damages to your business property. Keep in mind that a standard business owner’s policy combines property and liability coverage for your business.
Business Owner’s Policy with Endorsements – allows you to tailor your business owner’s policy with endorsements. For instance, you can add data breach coverage. This helps protect your business’s stored personal information about customers or employees. You can also add optional Business Income for Off-Premises Utility Services (OPUS) coverage. This helps cover a loss of business income from an interruption in utility services. It can help replace lost income so you can continue to meet ongoing expenses like rent, mortgage or payroll.
Get a home-based business insurance quote comparison from Independent Insurance Agents at The Milburn Agency.