In Home Businesses

#Business #insurance is often misunderstood as insurance for a corporation or a traditional storefront on Main Street, not for those of us who work out of a small office in our basement, or store inventory in our garage. Truth be told roughly 60% of home based businesses do not have insurance or think that their homeowners insurance policy will cover business property or inventory stored at their home. But most have very limited or NO coverage for at home businesses. What you will commonly find is an exclusion written in to a homeowners policy removing any coverage for businesses operating out of your home.

How many times have you had a delivery brought to your door by Amazon? Maybe this order is product or inventory for your business. If the delivery driver slips and injures themselves at your doorstep and decides to sue for negligence guess how is stuck with the bill ….. the HOMEOWNER! Homeowners policies without an in home business endorsement will deny this claim 100% of the time.

What can you do?

  • Call your homeowners or renters insurance agent and ask the question of; If I operate a business out of my home, or am thinking about operating a business out of my home, what coverage is included on my homeowners policy? What endorsements are available from my insurance company to cover a home business? Can you give me a quote on the cost?
    • When you approach insurance from this angle it puts you in front of a potential claim or gap in coverage.
    • Pricing for adding an in home business endorsement to your homeowners insurance policy is cheaper than you think!
  • Request a quote on business insurance.
    • Small business owners insurance policies are very inexpensive. You often gain coverage for business personal property, business liability (including on or off site injuries), and theft coverage.
      • Imagine the advantage if you are a photographer and have your camera stolen at an event! Having business personal property coverage protects that camara and will replace it when you file a claim with your business insurance policy.
    • Business insurance also will cover you if you are going into your customer’s homes, demonstrating products, or if you cause damage to your customer’s home while you are there on business.
      • Thinking ahead will save you time and money by purchasing business insurance!
      • Put your customers at ease knowing you are insured and your customer knows it too!
  • Find out if you have any coverage under your contract. **Now this is not for all small businesses.**
    • If you are a Mary Kay consultant, a nutrition product representative, or if you are affiliated, in any way, with a larger company, check out your contract for any extension of insurance coverage that being an independent consultant may afford you. It never hurts to ask!

Once a business insurance policy is purchased or your homeowners policy is endorsed with an in home business add-on you know you are covered against common losses that would otherwise go uncovered. You can provide certificates of insurance to customers who ask or require their vendors or consultants prove they are insured. This will build trust for your business in the community and for all those you encounter.

A business is NEVER too small to buy insurance. ALL businesses can suffer a claim causing it to go out of business. Don’t be the business that closes before it has a chance to succeed!


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