Do you have a home-based business? Half the businesses in the United States are based out of the owner's home. Most business owners believe their homeowner's insurance will protect them for a loss on their business, but the reality is that most homeowner's policies don't. Homeowner's policies provide very limited business property coverage, but no lost income or liability coverage.
The business owners should read through their current homeowner's insurance policy to determine what is covered and what isn't. A trusted insurance advisor can't also help a business owner determine if there is proper coverage for your business operations. Consider the following questions:
· Does your homeowner's policy limit coverage of business equipment? Most policies restrict coverage and some consider it to even violate policy terms.
· Do you have an office but work from home regularly? In this situation, you may need additional coverage to help protect yourself from work-related incidents that occur at your home.
· Do business customers, contacts or employees visit your home, or do you do business in their homes? Most homeowner's policies do not cover third-party injury claims related to their work/ business.
· Do you keep business data at home? Whether printed our or on a computer, security breaches and technology failures leave companies vulnerable to lost income and client lawsuits.
· Does your business require you to drive? You may need a separate business auto policy. Your personal auto policy may not provide coverage if you are in an accident while visiting clients, making deliveries or using your car for other business purposes.
· Do you have employees? If so, you may need a workers' compensation coverage.
There are ways for business owners to protect themselves. The following are a couple ways in which a business owner can help protect their business operations.
· Rider to a homeowners/ renters policy. This is typically a very low cost option that provides limited additional coverage. It may offer protection for a small amount of business equipment and liability coverage if a third party, such as a customer or delivery person, was injured at your home. This may be good for a one-man or smaller business operation conducted out of the home.
· Business Owners/ Commercial policy. This type of policy would provide the business owner with the most comprehensive coverage for their home business.
Now is the best time to be making sure you have the proper coverages. Don't wait till something bad happens, and it is too late.