Home Business Insurance Needs

Home businesses are on the rise in the United States with an astounding 19 million home-based businesses. Overall, 50% of all businesses are home-based. Unfortunately, it is estimated that about half of those home-based businesses are underinsured. Many depend on their homeowner’s insurance to cover their business and do not budget for the losses over their policy’s limit. 

A traditional homeowner’s policy will only cover up to $2,500 in business-related contents, for many businesses this may be too little. Furthermore, the coverage limits for items you take off the property is even lower. 

An endorsement to the homeowner’s policy may not provide the protections that your business needs. For example, businesses that provide professional services or guidance to their customers will need professional liability, this is not offered through an endorsement. 

A business owner’s policy can help resolve these potential problems. By offering higher limits and more comprehensive coverage, your home-based business can be properly protected in the case of a loss. 

Choosing what type of insurance you need is dependent on your business, and an agent is best suited to help you determine what coverages you need. Most of the time, a Business Owner’s Policy (BOP) will cover the business’ needs with a combination of general liability, commercial property, and business interruption insurance. However, there are additional coverages that may be added such as commercial auto, professional liability, worker’s comp, commercial umbrella, cyber liability, and employment practices liability. 

 As we are seeing more and more new businesses starting in the home and businesses convert to remote working and out-of-office work, a home-based business insurance policy may be a smart investment. Whether you keep inventory at home or take equipment on the road, ensure you have the proper coverages in place to protect your assets and shield yourself from liability.