Corporate Insurance

How to Insure Your Home Business

How to Insure Your Home Business is business regardless of location. This includes home business, so your decisions about insurance should be based on your needs, not your location. Almost 40 million home-based businesses in the US are unique. From smallest part-time ventures to millions of international companies, you need insurance that protects you and your owners from the risks that affect every other business.

Does Your Home Business Need Insurance? Running a home business can be rewarding and challenging. The latter is especially true when exploring the world of insurance. One of the particularly confusing aspects of working for an employer at home before you are confused is that you are covered by a homeowner or tenant insurance policy. The uncertainty is that the business equipment and materials related to the head office are covered by the homeowner’s insurance. This allows many entrepreneurs to believe that home business is also covered.

Adding confusion is the fact that we are protected by homeowners’ insurance even if you work directly, unless your main place of business is your home.

For example, my wife is a certified public accountant and I have an office one mile from my home. Her head office is protected by our homeowner policy despite having a business. Because she has an office elsewhere.

Read the policy carefully and ask your agent if you understand the limitations of the insurance contract.

To Insure Your Home Business what risk can be?

Failure to notify your insurance company of a home business will put your home and personal property at risk. Unpublished home business, whether for business or not, may be denied. For example, if your home was stolen, and the thief earned $ 20,000 from home assets and $ 10,000 from the housing business, the insurance company said the thieves were tempted by uninsured and undisclosed people, You can refuse home business. The policy may be canceled because you did not tell the business about it.

Other risks include injury sustained by someone about your property if it is relevant to your business. You are personally responsible for medical costs and damages.

This risk includes not only injury to customers or employees, but also others who visit your home for business. For example, if a FedEx driver leads your personal and business items home and falls, you will not be covered by accident insurance because the driver has provided services to your business.

Ask yourself questions

If you are starting or planning a home-based business, answer the following questions to assess your insurance requirements. What are the limitations of a homeowner or tenant’s business equipment policy? Because most policies limit coverage for business equipment, it is important to know what service scope and conditions you have.
Will your home be your main business? The insurance company clearly distinguishes between headquarters (subject to application) and home business (not applicable). You can be protected if you leave your home and occasionally have an office at home. Will customers, employees and other visitors come to our headquarters? In most cases, your homeowner or tenant insurance does not cover the injury of your visitors due to your home-based business.

Will you keep your business data at home? Proprietary business information such as personally identifiable customer information such as customer name and address or confidential information related to the name of the provider and home business is an opportunity for homeowners to cover losses.