You may be running a home business operation out of your house that is insured, but NEWS FLASH! The business isn’t covered under your homeowners insurance policy. Not only do you have work property that could be damaged, destroyed or stolen, but you also have data and business income whose value wouldn’t be covered under standard home insurance. Additionally, you might have inventory or the property of others stored at your house. If it is lost or destroyed, you will need coverage from a small-business policy.
The good news is small companies and sole proprietorships are booming in the United States, and insurers have responded with multiple types of insurance policies for in-home businesses. Some are written for the most basic protections — property loss and liability claims — while others are highly specific about the type of business you run, such as catering, cosmetic sales, tailoring or music lessons. Notice that some at-home businesses involve children and other clients entering the home. Very expensive, very serious claims that run up astronomical legal bills can arise any time your business entertains in-home visitors, especially children, so have an in-depth talk with your Trusted Choice® Independent Insurance Agent about liability insurance for your business, possibly including umbrella, or excess, coverage that broadens your protection.
With ransomware, malware and all sorts of other cyber-security concerns, a conversation with your insurance agent about cyber risk insurance is another smart move, as is taking online backups and cyber security seriously.
And if you have employees who work in your home or make deliveries for you, you’ll need to look at workers compensation and business auto insurance. Commercial auto coverage is also important if you use your own vehicle for business purposes. There are increasingly flexible options, which makes picking a tailored policy possible in many circumstances.
With the new boom in entrepreneurial spirit and myriad opportunities to be your own boss, there is a new freedom in earning a living. But there are also important administrative considerations, with appropriate business income, liability and property protection topping the list. Whether you want a business owners policy (BOP) that fits well for your small business at home or a set of stand-alone commercial insurance policies, your Trusted Choice Agent will be able to guide you to a great set of affordable choices.
