Category Archives: In-Home Business

Business Insurance for Young Entrepreneurs

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Congratulations, you started a YouTube channel and one of your videos has gone viral and you have morphed into an entrepreneur.  You now have a product or service to sell; you are on the right path to building a successful business.

As a business owner you realize you have a multitude of moving pieces that must be taken care of – one being the need to insure your new venture and assets.

Important components to insure:

  • Your property
    • Your computers, office furniture, equipment, and any other business personal property you need to run your business
  • Your space
    • Home-based operations? Your homeowners or renters  insurance may not cover you if you are operating a business
    • Renting space? Your landlord may require you to submit a certificate of insurance and name them as Additional Insured
    • Purchasing a building or condo for your business operations and taking out a mortgage?  You will be required to purchase insurance prior to the closing. And if you do not have a mortgage, it is important to insure your investment
    • Whether you are renting or purchasing you must insure your location
  • Your liability
    • Insurance will protect and provide you with defense against lawsuits arising out of you or your employee’s negligence. For example:  personal injury or property damage claims such as your product causes injury to someone or an entity,  someone trips and falls while visiting your business location, or your product damages someone else’s property.

You can bundle these valuable coverages into one policy, often referred to as a Business Owners Policy (BOP) or a Commercial Package Policy (CPP).

Other components:

  • Workers’ compensation– If you have employees, you are legally required to carry Workers’ Compensation insurance. This covers lost wages and medical costs due to an on the job illness, or injury.
  • Disability benefits insurance – covers lost wages due to an off-the-job injury or illness.
  • Professional Liability– Do you give professional advice or provide a professional service? If so, you should consider purchasing Professional Liability insurance.

Has this got you thinking?  Getting all your answers from Google may not be as easy as you think.  Google does not know your business.  However, by contacting an Independent Insurance Agent  like ourselves, will connect you with an insurance consultant that will provide you with ALL your answers !

Please don’t let your dream be destroyed by an uninsured event.   Think about it and contact us today!

The Rising Need for Cyber Liability Insurance

cyber liability insurance

With the reliance on technology in today’s data driven world the number of cyber-attacks are on the rise.  The media focuses on the larger companies suffering breaches; however, small to mid-size companies are not exempt from hackers.

Are you prepared to take on the cost of credit monitoring for your customers, as well as handling the cost of hiring a public relations firm to restore your reputation should your network suffer a breach?

An entity which gathers and stores any type of confidential personal information needs to be aware that this sensitive information may be stolen from an internal employee as well as outside hackers.  Examples of such entities include but are not limited to: Financial Institutions, Insurance Agencies, Insurance Companies, Accounting Firms, Mortgage Companies, Tax Consultants, Doctor Offices, and Dental Offices.

 The black market price of personal information, including health insurance coverage, is on the rise.

Available Coverages:

  • Network Security
  • Data Breach Notification
  • Crisis Management
  • Credit Monitoring
  • Communications and media coverage
  • Regulatory Notification
  • Legal Professional Services
  • Business Interruption
  • Privacy Notification Expense

A diligent effort should be made to explore the cost of Cyber Liability Coverage.  In today’s changing times Cyber coverage is no longer a luxury but a necessity.

When in doubt check it out!  Call – 516-419-5050 – or email us – info@jpins.com – with your contact information  today and we will be happy to consult you regarding your risk of suffering a Cyber loss and how to protect yourself from financial loss.

By: LuAnn C. Schook, ACSR, AAI, AIS 

Commercial Lines Manager at Petschauer Insurance

516-419-4263 | lschook@jpins.com

Business Activities Are Not Covered Under Homeowner Policies

home businessIn today’s challenging economic climate, with companies cutting back on their workforce, we find that many of our clients who have been affected by this have become very creative and resourceful. To put it succinctly, they are starting their own businesses right out of their homes to supplement their income so their bills can get paid. Garages, playrooms and even bedrooms are being converted into office space in order to run these business activities. We are finding these same clients are not aware that all Homeowner, Renters, Co-op or Condo policies contain an actual exclusion for any liability arising out of business activities of any kind. Not only is Liability excluded; but, additionally there is also very limited, if any, coverage for business property in the home as well.

The term “Business Activities” is not always so clear cut. The courts are full of instances where they have had to rule on the exact meaning of the term. There are specific features to a business activity:
(1) the hope that it will produce income; and
(2) the insured’s continuous participation in the activity constituting the business.
With reference to the desire to make money, that isn’t always applicable to the definition of the business since there are a great number of businesses that don’t get off the ground and others which never make any profit despite every effort made on the part of the entrepreneur to make it a success.

Remember, failure is not the inability to succeed; rather it really is the inability to try.

Here are some examples of In-Home Business Activities:
• Consultants – Attorney’s, Accountants, Organizers, Engineers, Architects, etc
• Whole Sale & Retail Sales: Cosmetics, Tuperware, Toys, Real Estate, Cookies, Bread, Home Renovations, Childcare, etc
• Manufacturing: Hand Crafted Jewelry, Baby clothes, Accessories, Clothing, Plaques, Furniture, Editing, Publishing, etc

The sole intent of a Homeowner’s policy is to provide coverage for all actions arising out of personal activities. There are, however, In-Home Business Endorsements which may be available to add as a rider to your existing Homeowner’s policies for only SOME of the business Activities listed above.

If you are lucky enough to have your small business grow to the point where you need to start hiring employees and /or purchasing extensive computer equipment, inventory and business furniture then you need to STOP RIGHT HERE! This is the time to call your insurance agent immediately as you may need a Businessowner’s Policy !

As the number of in-home business ventures explodes along with the need for supplemental income, we strongly suggest that you check your present Homeowners, Renter, Co-op or Condo policy for any limitations.

Speaking to your insurance agent on, at the very least, an annual basis to discuss changes in your occupation, or any other changes in your life or to your home for that matter, is vital to having all property and assets insured the way you want and need them to be insured. After all, that is what your agent is for—to assist you in covering your exposures to loss whether you recognize the need or not.

– Karen Skoler, CPCU