Home-Based Business Insurance

If you run a small business out of your home, you are just as much at risk as any other company. Special types of small business insurance are tailored specifically for home-based businesses and can protect business property, liability, personal and advertising injury, workers’ compensation, loss of business data, crime and theft, disability, and more.

The National Bureau of Labor Statistics has found that a staggering 3 out of 10 American homeowners run home-based businesses. Among all Americans who work at home, 66% are self-employed and own a business, yet more than half of all home-based business owners are underinsured. Many of them think that their homeowner’s policy will cover them, but it may not be sufficient. Those who run a home-based business need to consider purchasing home-based business insurance.

Home-based businesses are generally not covered by standard homeowner’s insurance policies. For example, if you use a separate structure, such as a garage on your property, for your home office, it would probably not be covered if damaged. In addition, most of your business equipment, inventory, and assets would not be covered. Generally, homeowner’s insurance policies limit your business property coverage to $2,500 on the premises and $250 off the premises of your home. Although your policy might cover a mobile phone that is lost while you are out on business, you may not have this coverage if you lose or damage your laptop while away from home.

If a client or customer were injured while visiting your home office, your homeowner’s insurance will not cover the associated costs. In addition, you will also not be covered if you accidentally were to injure someone while out on business. Home-based business insurance can minimize these common risks and many others.

Home-based business insurance also may be necessary to cover your business data, such as books, software, and files. Most homeowner’s policies do not offer this coverage. Also, if you offer financial advice or information via a press release or business report that financially damages someone , this type of small business insurance would cover any liability costs.

Some homeowner’s policies offer additional coverage for business assets at a minimal cost. This type of insurance coverage may pay more for lost assets or cover specific perils. Check with your insurance agent to find out what home-based business insurance options will offer you the best protection.

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