Common coverages for home-based businesses include personal business property, professional liability, business income, personal and advertising injury, loss of business data, crime, theft and auto coverage. Depending on the type of home-based business you have, not all coverages apply, and other coverage options may be available.
Based on your business needs, you have three basic coverage options to choose from, depending on your level of risk:
Homeowners Policy Endorsement
This provides the least amount of coverage and, therefore, is not ideal for most home-based businesses (depending on the level of risk). While it may provide enough coverage for a freelance writer with one computer and no business foot traffic, it’s not enough for someone who employs others, has clients visiting his or her home or has valuable business equipment and/or inventory.
In-home Business Policy
More comprehensive than a homeowners policy endorsement, in-home business coverage is a stand-alone policy that provides higher amounts of coverage for business equipment and liability.
Business Owners Policy, or BOP
A BOP bundles property and liability insurance into one policy. Created specifically for the small- to mid-size business, a BOP covers your business property and equipment, loss of income, extra expense and liability. It is the most comprehensive property and liability option. It does not include health or disability insurance, which are available as separate policies.
What’s Your Risk?
While most homeowners insurance policies do cover a limited amount of business equipment—computers, copiers and printers, to name a few—it's likely that what you own is worth more than your policy's limits. Also, your homeowners liability insurance probably won't cover any injuries that may occur to the employees or clients that you have on your premises. What’s a home-based businessperson to do?
Properly insuring your home-based business is crucial to protecting both your business and your home. At Scrivens, we understand the small business owner’s personal and business needs, and can help you tailor coverage that’s as unique as the products and services you provide. Contact us today to learn more about how we can help you insure your livelihood.