As a business owner, you have a lot on your plate. From daily tasks to meetings with prospective clients, determining the right insurance can be challenging. If you’re operating a business out of your home, then you may be wondering if you need insurance to protect your financial interests as related to your business. It’s important to be aware that when your home is also the place you run your business that your current policy may not have the necessary coverage you need for a variety of circumstances. Complete protection is what you should be aiming for, and home-based business insurance can move you closer to that goal.
What is home-based business insurance?
It’s important to understand what home-based business insurance entails and who it’s for. After the COVID-19 pandemic, the growth of individuals working from home skyrocketed. However, home-based business insurance doesn’t apply to employees of businesses and, instead, serves those running their own businesses from home. There are three parts to this type of insurance; liability, property owned by your business and business interruption insurance:
a) Home-based business insurance is there to protect any business property used for business purposes, whether at home or off-premises. If your business premises has a fire, theft, or flooding, then your home-based business insurance may provide coverage.
b) If there is a business interruption, home-based business insurance can help cover the cost of loss of income due to that business interruption. This can give you peace of mind that your financial needs will be met even if an unexpected issue arises. Limits and exclusions may apply.
c) If during a business activity, you were held liable for an injury to another person or damage to another’s property, then home-based business insurance can protect you.
How does home-based business insurance work?
Home-based business insurance can be added to your regular home insurance policy. While the business must be operating out of your home, this type of insurance may cover a variety of home-based businesses including office services, sales, crafts and other services. The list of eligible business types will be determined by your personal home insurance company, so be sure to check with your provider to see if your business has the potential to be covered.
It’s important to note that if you have more than one business run from home, the insurance provider may determine that you do not qualify for a home-based business insurance add-on and instead will require a full commercial insurance policy.
Why should you get home-based business insurance
Under your standard home insurance policy, it’s unlikely that you’ll have business property coverage or business liability insurance. These gaps in your current policy can leave your business open to risk. Adding this type of insurance to your policy can ensure that you and your business are protected.
How to Purchase Home-Based Business Insurance
As a business owner who operates your business within your home, you may not know where to start when purchasing this add-on to your regular home insurance policy. If you need some guidance, an insurance broker will act in your best interests and can find appropriate and affordable coverage options to help you determine how to approach adding home-based business insurance to your policy. The Keller & Associates Insurance Brokers team has the knowledge and experience to advise you on which home-based business insurance options will work best for your unique situation. Get in touch, and we’ll help you find the right protection.
