Does Your Home Owners Insurance Cover Your Home-Based Business?

Does Your Home Owners Insurance Cover Your Home-Based Business?

You have a home-based business. You have homeowners insurance. Most likely, it covers your business, right?

Well, maybe not.

Depending on the type of company you have, your insurance might not fully address your business needs. You might require more extensive coverage.

But first things first. Does your homeowners insurance even allow you to operate a business at home? Your insurance policy might prohibit commercial activity. Take a look at it to make sure there are no business-activity restrictions.

Once you’ve determined that your existing insurance leaves the door open to operate a home-based business, the next step is to make sure your business is adequately insured.

Make a list of business activities and equipment

To do that, it’s helpful to comprise a list of business-related activities that occur in your home, and equipment used to carry out those activities. Do you meet personally with clients? Make telephone calls? Work on a computer? What if a visiting client trips over your threshold and injures himself? Or your cell phone, which contains pertinent contact information, is lost or stolen? Or a power failure or computer malfunction causes you to lose crucial business data?

Determine your most likely insurance needs

Not every home-based business needs the same kind of coverage. For example, if you never meet with clients or employees at home, but do maintain extensive data on your home computer, your coverage needs would differ from someone who regularly works with clients at home but stores records in an outside office.

Let us help

So, that’s where we’ll begin. We’re here to help you take action regarding your specific business needs. To get started, contact us today.