Do You Have the Right Insurance for Your Home-Based Business?

If you’re running a business from your home, you may not have enough insurance to protect your business equipment.  

Running a business from the comfort of your own home offers plenty of benefits: no commute, all essentials at hand, and endless possibilities to get tasks done! However, if you’re conducting business from your house, you may not have sufficient coverage to protect your business property.

Should an accident destroy your home, you’ll not only have lost personal items, but your business equipment, too. For this reason, sustaining all-encompassing insurance is imperative.

A typical homeowners policy provides only $2,500 coverage for business equipment, which is not usually enough to cover all of your business equipment. You may also need coverage for liability and lost income!

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.

Depending on the business that you run and the size of it, it may be best to opt for additional coverage. Serving Mifflintown, Millersburg, Lewistown, and surrounding cities in Pennsylvania, visit the professionals at Sausman to learn how you can acquire reliable protection for your home-based business.