Is your home business properly insured?
Do you work from home full time or part time? Most likely, your homeowners insurance will not cover your home business, or at least not to the extent that you need it. For one thing, insuring only the physical assets of your business (computer, home office furniture, fax machine, etc.) does not cover every aspect of your business.
To find out how much and what type of coverage you need, consider potential accidents; Hopefully, nothing adverse will happen to your business or home, but you should plan for any eventualities so that you don’t suffer financially if something does happen.
If a fire destroyed your home and office, consider where you would work until your home is rebuilt. You probably need to rent a temporary office space somewhere. Does your current insurance policy cover this?
Do you keep any kind of customer information, either on your computer or in files? If your computer was devastated by a virus, or your files damaged in a fire, and you didn’t have copies of all that information, your customers could hold you responsible for the loss.
If you have clients visiting you at your home office, your landlord’s insurance may not cover your medical expenses in case they trip and fall down the stairs or something.
Do you have employees? Even part-time employees can affect the type of business home insurance you need.
As you can see, there are a number of factors to consider when insuring your home business. Talking to your current owner’s insurance agent can probably help you get started in the right direction. You may not even need separate home business insurance. Depending on your business, you may be able to receive coverage simply by upgrading your current homeowner’s insurance policy.
Tip: If you bundle your policies (i.e. auto, homeowners, business), you may qualify for a discount.
As more and more people search for home-based businesses, insurance companies are beginning to offer more comprehensive coverage at better rates. Be sure to speak with several insurance agents to find out who has the best rates, the most options, and the best coverage.