Insurance requirements of home-based businesses

Are you among the increasing numbers that are finding opportunities running a business from home? The benefits are attractive: you can be your own boss, set your own hours and don’t have to worry about getting laid off … but you need to make sure you and your valuable property are protected. So, if you’ve recently become an entrepreneur running a home-based business or sell home products like makeup or candle arrangements for extra income, getting to know the gaps that may be hiding in your insurance coverage is very important.

Home Business insurance policies and eliminating coverage gaps
Most homeowners policies limit the amount of coverage available for property on the insured premises used primarily for business purposes. However, a Home Business insurance policy may help protect you, your income and give you security and peace of mind while you grow your business.

Coverage for your home business
The coverage under most Home Business insurance policies is similar to that of most Small Business insurance policies:

• Property Coverage — Includes coverage for losses to your building and premises, business personal property and contents.
• Liability — Covers damages to your business for losses to third parties from:
• Bodily Injury — People injured on your premises or by a product you manufacture or sell.
• Personal Injury — Violations of privacy, false imprisonment, wrongful eviction, etc.
• Advertising Injury — For losses due to alleged slander, libel, or copyright infringement by you or your employees.

Telecommuters
If you telecommute or work remotely for an employer, the insurance issues for a home office may be even more complicated. For example, you may be covered under your homeowners policy for property you own, such as your desk and filing cabinets, but your employer may be covered for loss to company-owned property such as your computer or smartphone. If a delivery person slips on wet steps at your home while making a business-related delivery, your employer’s policy might cover, your homeowners policy might cover, or you could find yourself in the middle between the two carriers, both of which may initially deny the claim. Bottom line: If you work remotely, be sure to check your homeowners policy and ask your employer to confirm what the terms and conditions of its policies are, to avoid finding that neither policy covers a loss after it’s too late.

A new opportunity
Many of us are re-evaluating our lifestyles and for some of us, operating a home-based business provides a new opportunity. Let’s get together — I can help make sure you have the information you need to select coverage you feel is appropriate for your situation. Call me today to set up an appointment.