Home-based businesses are popping up everywhere! Tons of people have found home-based businesses to be an excellent option in response to rocky economic times. From generating some extra money, to being a full-time job, to allowing a parent to stay home with the kiddos and still work….home-based businesses can be a great option. Often home-based businesses rely heavily on web-based transactions. As convenient as this work option can be, it can also present liability exposures if not managed properly. Check out some of these points of insurance coverage options for home-based businesses!
Common coverages for home-based businesses include personal business property, professional liability, business income, personal and advertising injury, loss of business data, crime and theft, workers’ compensation and auto coverage. Depending on the type of home-based business you have, not all coverages apply, and other coverage options may be available.
Coverage Options: Based on your business needs, you have three basic coverage options to choose from, depending on your level of risk and the services offered by your business. To avoid gaps in your insurance protection plan, it is essential that you discuss your options and business with your insurance provider.
1-) Homeowners Policy Endorsement: This provides the least amount of coverage and, therefore, is not ideal for most home-based businesses (depending on the level of risk). While it may provide enough coverage for a freelance writer with one computer and no business foot traffic, it’s not enough for someone who employs others, has clients visiting his or her home or has valuable business equipment and/or inventory.
2-) In-home Business Policy: More comprehensive than a homeowners policy endorsement, in-home business coverage is a stand-alone policy that provides higher amounts of coverage for business equipment and liability.
3-) Business Owners Policy (aka: BOP): A BOP bundles property and liability insurance into one policy. Created specifically for the small- to mid-size business, a BOP covers your business property and equipment, loss of income, extra expense and liability. It is the most comprehensive property and liability option. It does not include workers’ compensation, health or disability insurance, which are available as separate policies
What’s Your Risk?: While most homeowners insurance policies do cover a limited amount of business equipment—computers, copiers and printers, to name a few—it’s likely that what you own is worth more than your policy’s limits. Also, your homeowner’s liability insurance probably won’t cover any injuries that may occur to the employees or clients that you have on your premises. Many home owners mistakenly assume that their home insurance policy will protect them from business exposures. However, a typical home insurance policy is not designed to provide coverage for business risks. Be sure to know what is included on your home policy and be sure to update your insurance provider on any changes that may evolve in your business. Specific risks require specific coverages.
We’re here to help.
Properly insuring your home-based business is crucial to protecting your business, your assets, and your home. We understand the small business owner’s personal and business needs, and can help you tailor coverage that’s as unique as the products and services you provide.
To get the tailored policy coverage that you need for your home, valuables, auto, LIFE, or business, call The CHOICE Insurance Team today at 757-416-5100 and ask for a free, comprehensive review. Give us a call today!
All the Best,
The CHOICE Team
In 2008 Choice Insurance Agency was created out of the former Realty Consultants Insurance Agency founded in 1980 by George Ayers Capt. USN Ret. Since 2008 the Choice Insurance Agency has more than tripled in size and is continue on a track of rapid growth. The Choice Insurance Agency focuses on four areas of expertise: Private Client Group, Coastal Coverage, Senior Programs and Commercial/Business Insurance. Our business model has allowed us to expand into all of the states on the Eastern Seaboard from New York to Florida including Pennsylvania and DC to better serve our ever-growing client base. As an Insurance brokerage stationed in Hampton Roads with access to well over 40+ insurance carriers, the Choice Insurance Agency is able to shop for the best rates, cover those picky coastal zones and create a tailored plan to fit your insurance needs. The Choice Insurance Agency. Call us today and see why we are the top “CHOICE” in Hampton Roads.