Your home-based business may need additional insurance coverage.
Over half of the small businesses in the U.S. are home-based enterprises. Today’s numbers have it at around 52 percent, but research suggests that percentage will increase in the coming years. These days, home-based businesses are more diverse than ever before, with special thanks to technology that allows for remote work. Some entrepreneurs assume that their homeowners insurance covers their business – but this is a costly mistake to make. Additional insurance coverage may be needed to cover a home-based business.
Regardless of the type of policy you choose, if you’re a professional working out of your home, you’ll need professional liability insurance. To insure your business, you’ll have three basic choices, depending on the nature of your company and the insurance company from which you buy.
Homeowners Policy Endorsement
You may be able to add a simple endorsement to your existing homeowners policy to double your standard coverage for business equipment such as computers. You can also buy a homeowners liability endorsement. You need liability coverage in case clients or delivery people get hurt on your premises. They may trip and fall down your front steps, for example, and sue you for failure to keep the steps in a safe condition.
In-Home Business Policy
An in-home business policy provides more comprehensive coverage for business equipment and liability than a homeowners policy endorsement. These policies tend to reimburse you for the loss of important papers and records should they get lost or destroyed in a covered peril. The more protective policies will pay for income that you lose in the event that your home is so badly damaged by a fire or other disaster that it can’t be used for a while. They’ll also pay for the extra expenses of operating out of a temporary location.
Business Owner’s Policy (BOP)
Created specifically for small to mid-size businesses, this policy is an excellent solution if your home-based business operates in more than one location. A BOP covers business property and equipment, loss of income, extra expense, and liability. Business owners should note that this policy doesn’t include workers’ compensation, health, or disability insurance. If you have employees, you’ll need separate policies for these coverages.
Whether you need a new policy or are looking to move insurers, visit Lofgren Agency to get started on the right commercial insurance policy in Hudson, New York today!