For the budding entrepreneurs and business owners, starting a home-based business has a lot of perks, like being able to make your own hours and saving money on renting a workspace. While there are many factors that go into maintaining a successful business, insuring it tends to get ignored.
You may be surprised to learn that your home insurance doesn’t necessarily cover your home-based business. If you have clients coming into your home or if you keep business related inventory, it is important to talk with your insurance agency about additional coverage.
We would like to share some insurance terms you talk to your insurance agency about; to make sure your home-based business is covered correctly:
Types of Insurance Policies and Endorsements
- Add-on Endorsements: For the businesses that are not likely to experience great business-related threats, an add-on policy to your existing homeowner or renter’s insurance policy could be the best option. This add-on policy is inexpensive and gives you good coverage for small businesses who use their home office mostly for administrative purposes. Add-on policies will protect your business in cases of fire or other natural disasters but could leave you uncovered for other liabilities like an injured employee or damage to expensive business equipment.
- In-Home Business Policy: If your business includes clients coming in and out of your home, or if you use expensive equipment to operate your business, an in-home business policy will give you the coverage you need. This kind of policy will cover injuries for both customers and employees in addition to various types of theft. These polices can cover up to $10,000 in losses and damages.
- Liability Insurance: There are different types of liability policies that include coverage for both products and injuries that have occurred at your home-based business. If your business makes and sells products inside your home, those goods will not be covered by your homeowners or renter insurance policy. If you conduct high volume traffic or production of good inside your home, your business might be at high risk for loss and may benefit from additional liability insurance coverage.
- Businessowners Policy: If your business needs a more comprehensive insurance plan, a businessowners policy will usually provide coverage for almost all scenarios – theft, injury, malpractice lawsuit and damage to business related equipment. For the businessowners who use expensive equipment like professional cameras or factory level equipment, a businessowners’ policy will offer the best insurance coverage. While you will pay more upfront, your insurance coverage could be worth millions, depending on your needs.
- Other Coverages To Think About: There are certain circumstances that would require additional specialized coverage. Make sure to talk to one the insurance specialist at R.C. Keller & Company if any of these pertain to your home-based business:
- You have a company vehicle that is being used by more than one employee
- If you have multiple employees, you should look into workers compensation insurance
- Commercial Crime Insurance protects businesses from theft and fraud
R.C. Keller & Company is your local independent insurance agent
We just went through a lot of aspects of owning a home-based business that should be covered by insurance. If you are ready for an insurance upgrade, R.C. Keller & Company is here to help, just give us a call at 847-907-4520 or contact one of our insurance agents by email. We have been helping the home-based businessowners of Schaumburg and the surrounding areas since 1910.