Many people operate a business from home and are unaware that it could impact their home insurance. If you operate a business from your home, make sure you inform yourself.
If you’re a business owner who works at home, or you earn an income from work you do at home your insurance coverage could be affected and may not provide proper coverage.
Is Your Business Activity Covered?
A standard homeowner’s policy does not cover business activities and this includes you, supplies, materials or clients/visitors who are on your property for business purposes. For example, if you are an artist and create works from home that get destroyed in a fire, your home policy could deny covering the loss.
Proper Liability Insurance Coverage
It’s especially important to have proper business insurance in place if you have employees who work in your house and get injured. Even though you are the homeowner and have a homeowner’s insurance policy, you or your employees may not be covered if injured while performing business activities.
Separating Home and Business Insurance
Even if you don’t have inventory and work alone from home, the need for business insurance is crucial. For example, there may not be coverage for the UPS person who falls on your property after delivering a business package to you.
Purchasing Insurance for the Business Use of Your Home
Often times you can purchase additional insurance for the business use of your home as an extension of your standard homeowner’s or renter’s insurance policy. The size of your business will determine what policy you will require.
If you operate a large business, you may need to purchase a stand-alone business insurance policy. Other factors that determine which policy you need include the number of employees that work on the premises and inventory you have on your property.
If you are running a business out of your home and need some guidance about proper insurance coverage, please contact us to speak with a broker. We will be happy to provide guidance and information as well as design a policy that will ensure you and your business are protected.
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