A recent MSN study found that the Number One job in the country is working from home. For many of those who enjoy working from home, they are starting, operating, and growing their own business. An estimated 12 million Americans operate a full-time or part-time business from their home, and that number is growing each year. Entrepreneurs are a very specific brand of people who are often savvy, smart, and creative, but often neglect to purchase home business insurance.
Homeowner’s insurance is not enough. Home business insurance is absolutely necessary to protect a home-based business against loss. If catastrophe hits, homeowners insurance may cover the structure, but valuable business materials and costs will not be covered. In order to protect the property, equipment, inventory, and liability that comes with a home-based business, it is important to purchase Home Business Insurance.
What Does Home Business Insurance Cover?
Home business insurance offers a wide range of protection. Not every policy will include all of these items, but this list includes the options available in home business insurance. You can customize your own business insurance coverage with your own insurance representative. Coverage options and limits for your specific home business insurance policy may vary.
- Property Insurance: This will cover the cost to replace equipment or inventory damaged or destroyed by a covered disaster.
- Liability Insurance: This is necessary in case a customer or supplier injures themselves on your property. Liability also extends to those who suffer injury using your product or services.
- Loss of Income Coverage: This option will reimburse your lost income should your business be forced to shut down temporarily as a result of a covered disaster. This usually includes ongoing expenses, including payroll.
- Document Coverage: Valuable document coverage covers accounts receivable and expenses related to conducting business off-site (including use of equipment).
Getting home business insurance is easy. There are three ways to purchase the home business insurance coverage you need. First, you can add an endorsement to your home insurance. This is dependent on the type of business you operate. For instance, some insurers offer home day care coverage endorsement for those homeowners who operate a home day care service in their home. Other companies offer property and liability insurance for "incidental" businesses operated from your home.
Second, you can purchase multiple business insurance policies individually such as business property, general liability and business income insurance. Lastly, the best way to get comprehensive coverage is to consider a business owner's package policy. This is ideal for smaller businesses, which combines the necessary property and liability insurance coverage in a single policy.