There are millions of Americans that do some type of business from home. Having a home-based business can be an ideal situation for certain people like single parents or housewives looking to make some extra money. There are many advantages in running a business out of your home. There’s no commute, and you don’t have to pay for a separate building. So, if you have a home-based business, is there any reason you should have a separate insurance policy for your business?
There are some common misconceptions about home-based businesses. One of the more popular beliefs, and one that keeps home business owners from getting business insurance is that your homeowner’s or renter’s insurance will cover your home business. The truth is, your homeowner’s or renter’s insurance is not sufficient when it comes to your business. In fact, if you’re using your home for purposes other than what your insurer is aware of could void your policy.
If you have an employee working with you and they get hurt, or if a client gets hurt at your home business, your insurance may not help you out. Should a client get injured on your property and decide to sue you, you may be on your own. Your homeowner’s insurance will only pay for injury claims for guests on your property, not business-related visits.
If you keep inventory at home or have expensive business equipment at your home business they may not be covered if something happens. Will your business shut down if there is damage to your home? The loss of income while your home is being repaired won’t be covered with a homeowner’s or renter’s insurance policy.
If you don’t want to expose your home business to a disaster without insurance coverage it may be as simple adding a rider to your existing homeowner’s or renter’s policy. Why take a chance? Go see your agent as soon as you can.