Most self-employed professionals work from home. These people often use their homeowner’s insurance policies to provide protection for their business.
It’s important to realize that business files, equipment and operations aren’t necessarily covered. To properly secure your home business, consider home based business insurance. Using your home for activities your insurer isn’t aware of can invalidate your homeowner’s policy.
Home based policies are designed specifically to handle the business insurance needs of a home based business. This policy can also replace lost income, which is something homeowner’s doesn’t offer. Coverage includes losses or damage from business activities conducted at the home or off-site. Business property is protected while the policyholder is in transit, and provides liability coverage when they are performing business-related activities away from home.
The home business policy is specifically designed for home-based businesses. Some examples include selling clothing, jewelry, skin care products, and online businesses.
Coverage can include general liability. If you don’t have inventory or equipment, then you might want basic coverage with a general liability policy. This will provide coverage in the event of a business-based lawsuit.
Business owner’s policy covers structures on the property. Includes damage to inventory or loss of business income if your home is damaged by fire or high winds. It’s also possible to personalize a policy by adding endorsements. For example, data breach can be added if your business stores personal information about customers or employees. And Optional Business Income for Off Premises Utility Services coverage covers loss of business income resulting from utility service interruption.