With the recent events, many people have chosen to leave their corporate jobs, stop their long commutes, and start their own home-based business. According to the Small Business Administration, there are 30.2 million small businesses and about half of them are home-based. These businesses range from handyman services, small craft boutiques, professional services (like accounting and consulting), and many others. The question is whether your homeowner insurance provides the coverage you need to be properly protected. The short answer is No.
Most homeowner policies exclude coverage for most business exposures. Therefore, depending on your business, you have risks that need to be covered. Consider the exposure you have from:
Products you make or sell
Services you provide
Advice you give
Clients visiting your home
Protecting clients’ personal information
Damage to your garage where you work or store inventory and/or equipment
Although your business is home-based, you have the same risks that a traditional business would have.
The one area where your homeowner policy may be helpful is coverage for business equipment and/or inventory. Most homeowner policies provide limited coverage (usually $1,000 – $2,500) for business property you own. Some companies will allow you to increase that amount.
There are many insurance options for a home-based business. These policies typically start at $300 and increase from there depending on the business. We can help you assess your exposure and recommend a solution to meet your needs.