Businesses operated from the home make up a fast growing portion of the commercial market. But as a home business owner, you may not realize that your Homeowners insurance may not sufficiently cover you.
|Property Used in Your Business|
|Loss of Income|
Homeowners insurance may not sufficiently cover you. As a business owner, you can have the protection you need with the assistance of an agent at Petruzelo Insurance, who will take the time to listen to your concerns and help get you the information you need to make a sound home based business insurance decision.
Millions of homeowners across the United States operate home-based businesses. Many of them lack adequate insurance. The most common reason for that is that people who operate home-based businesses often erroneously assume that their homeowners’ insurance policy will cover their business. This lack of coverage can be costly if someone becomes injured on the property or if data or property is lost or damaged.
A homeowners insurance policy may provide limited coverage for a home-based business, but it is generally inadequate. If you have an office but often work from home, you may need additional insurance coverage. If people regularly visit your home to conduct business, your homeowners insurance policy will probably not provide coverage if they are injured.
Most standard homeowners insurance policies exclude coverage for home-based businesses and do not cover lost income, lost data, or liability. Some policies consider opening a home-based business to be a violation of the terms.
If you operate a home-based business, you have a few options to make sure you have adequate insurance. One is to add an endorsement to your homeowners policy to raise your limits or to cover specific perils. Some endorsements cover property and provide limited coverage for liability. You may not be able to get an endorsement if your earnings exceed a limit set by the company.
Another option is to get an in-home business insurance policy. You can insure your company’s property and get coverage for general liability. An in-home insurance policy will cover lost income, as well as ongoing expenses such as payroll, if your business needs to close temporarily because of damage to your house. It may also provide coverage for loss of documents, accounts receivable, business property located off-site, and equipment use.
A third option is to get a package business owners policy, or BOP. This type of insurance is designed for small and medium-sized businesses, including home-based businesses that operate in multiple locations or manufacture products at another site. A BOP can cover damage to your or your customers’ property caused by a fire or natural disaster, loss of income, extra expenses, and liability.
A BOP can provide coverage for a business interruption, damage to equipment, loss of data, malpractice, and professional liability. A BOP is a good choice if your business stocks inventory, makes products, conducts business both at your home and in other locations, or has a high risk for professional liability.
If you operate a small business out of your home, your homeowners insurance policy may not provide the level of coverage you need. Failing to have adequate coverage could put your company in jeopardy if operations are disrupted, someone is injured, you suffer a data loss or breach, or you are sued for malpractice.
A home-based business insurance policy can provide the level of protection you need so your company will continue to be able to function if a problem arises. Petruzelo Insurance can discuss your needs and options and help you get quotes from several leading insurers. Contact us today to learn more about home-based business insurance.
There are also optional coverages available that let you tailor your policy to fit your business needs. For more information about home based business insurance in Connecticut, contact an agent at Petruzelo Insurance today.