Do you work full-time or part-time from home? Chances are, your homeowner’s insurance policy won’t cover your home business, or at least not to the extent you need. For starters, insuring only the physical assets of your business (computer, home office furniture, fax machine, etc.) does not cover every aspect of your business.
Consider possible accidents to find out how much and what kind of coverage you need; hopefully nothing bad will happen to your business or your home, but you need to consider all possible events so that you don’t suffer financially if something happens.
If a fire destroyed your home and office, think about where you would work until your home was rebuilt. You will probably need to rent temporary office space somewhere. Does your current insurance cover this?
Do you store any kind of customer information, on your computer or in files? If your computer was ravaged by a virus, or your files were damaged in a fire, and you didn’t have copies of all that information, your customers could hold you liable for the loss.
If you have clients visiting you in your home office, your homeowner’s insurance may not cover their medical expenses if they trip and fall down your stairs or something like that.
Do you have employees? Even part-time employees can affect the kind of home business insurance you need.
As you can see, there are a number of factors to consider when insuring your home business. Talking to your current homeowner’s insurance agent can probably get you started. You may not even need separate business insurance. Depending on your business, you may be able to get coverage for it by improving your current homeowners insurance policy.
Tip: If you bundle your policies (i.e. car, homeowners, business) you may be eligible for a discount.
As more and more people pursue home businesses, insurance companies are starting to offer more comprehensive coverage at better rates. Be sure to talk to some insurance agents to find out who has the best rates, the most options, and the best coverage.