28 Aug Home Based Business Insurance
When running a business from your home there is so much to consider. Where do I set up my office? What type of equipment do I need? Do I need space for inventory? Will clients or customers be coming to me? Will I have employees working in my home? Have you thought of the question,” Will my homeowner’s insurance policy be enough coverage for my business?”
Most home based business entrepreneurs unfortunately think that their homeowner’s policy will be adequate for their business as well. Your homeowner’s policy provides coverage for your home and people visiting it but using your home for other purposes, such as running business that your insurer is not aware of, may invalidate your policy completely. Home based business insurance is a must have.
Home based businesses vary in size, profession, equipment, inventory and more. Therefore, there’s not a one-size-fits-all insurance policy for every home based business. Here are three basic coverages to consider:
1. General Liability Policy or rider to your current homeowner’s policy. This would be the least expensive option and includes a very basic liability policy. This type of coverage would be sufficient for a 1 person operation without valuable equipment or business related visitors and deliveries. The cost rate will be around $100 for $3,000 of coverage.
2. In-Home Business Policy. This type of policy is needed if you have 2-3 employees and have people coming in and out of your home based business. It also covers loss from theft or loss of critical documents or records. The rate for this type of policy is about $300 for $10,000 of coverage.
3. Business Owners Policy (BOP). This is the most comprehensive coverage. If you need more than $10,000 of coverage this is a good option. It includes; liability for employees, customers, and deliveries, loss of critical documents or records, loss of income due to power outage or natural disaster. For most home business owners this is a suitable safety net. The rate and coverage for a BOP will vary from business to business.
Depending on the line of work you will be doing, there are various endorsements or additions you might want to consider when insuring your business. These would include but are not limited to:
- Product Liability Insurance
- Professional Liability Insurance eg. Malpractice Insurance
- Errors and Omissions Insurance
- Data Breach Insurance
- Business Interruption Insurance
- Business Vehicle Insurance
- Workman’s Compensation
- Disability Insurance
With so much to consider when insuring your business it’s best to get advice from a trusted advisor. The VanDyke Group will be able to walk you through the process of purchasing the right policies for your business. As your business grows we will review your policies and make sure you have the appropriate coverage. Why not give us a call for your changing needs.
Want to save money? Let us help you.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your medical professional or legal representative for information specific to your needs.