Running A Home-Based Business – Do You Need A Small Business Policy?

Don’t count on Homeowners insurance for your Business

Home office with desk, credenza, and several clocks set to various timezonesLike most new home-based business owners, you might believe that your Homeowners or Renters insurance coverage offers you.  Sorry, because in most instances these policies offer little to no coverage for business-related losses.

Homeowners policies are not designed to cover business losses. Most offer a small amount of business property coverage, meant to cover incidental items, such as a computer used for office work or liability connected with afternoon piano lessons.

Do you need separate Business insurance?  Check the checklist.

Take a look at the following list. If one or more of the items below apply, you might want to consider a Business policy for your business:

  1. Business Property, Stock or Equipment greater than $10,000 in value. A Business policy will allow you to insure your office contents, equipment, and stock.
  2. Clients visit your office/use your product/depend on your service.  Liability insurance can help cover your exposure to lawsuits resulting from slip and falls, product liability claims, personal injury claims, etc. Perhaps even more importantly, it will provide defense costs for such actions.
  3. An Error or Omission could result in a lawsuit that would need to be defended/could seriously damage your business. Professional liability coverage will protect you from judgments and defense costs resulting from your mistakes.
  4. Damage to your workplace could cause you to lose business, perhaps even lose some customers permanently.  Business Interruption coverage will help pay for expenses until your property is repaired or sales return to normal (depending on the policy form).
  5. Your employees use their vehicles to make deliveries or run errands for your business. Non-Owned Automobile Liability will protect your business in the event that your employee has a serious accident during the course of running an errand for your business.

Contact our office today for more information about your home-based business insurance needs! Call us! 214-265-1221