While operating a small business from your home may earn you some extra cash, it often leaves you exposed to potential property and liability losses not covered by your Homeowners policy. Most homeowners policies provide NO coverage for liability claims relating to business activities and provide only minimal coverage for business property (the standard limit is $2,500 on premises and $250 off premises). Fortunately, for most in-home businesses, you can obtain the coverage you need at a very affordable cost. Depending on the type and scope of the business, it may be as easy as adding the coverage to your homeowners policy by endorsement. If not, there are Home-Based Insurance policies designed and priced to cover your in-home business exposure.
What can happen? Here are some scenarios where you will have out of pocket losses if you don’t properly insure your in-home business:
A customer or client slips and falls while visiting your home and sues you
A fire destroys your inventory and/or other business property valued over $2,500
Your business equipment is stolen from your vehicle
While working at a client’s home you damage the client’s property and are held responsible for the damage.
Bottom line: if you run a business out of your home or use your home for any business purpose… no matter how small… let your account manager know so that they can get you the proper coverage. Protect yourself and your business.