When Do You Need Insurance for your Home-Based Business

February 21, 2017      

Did you know that according to the Small Business Administration more than half of the businesses in the United States are based out of the owner's home? If you own a home-based business then we offer our congratulations. We send our congratulations because you are a core contributor to our great country and are a foundational supporter of our country’s economic success.

Now with that said, you country is counting on you and the Small Business Administration reports that upwards of half of home-based business owners fail to carry home-based business insurance coverage. Many home-based entrepreneurs think their homeowners' insurance policies cover their business needs when the unexpected happens, but the reality is that most homeowners' policies do not.

Homeowners insurance sometimes provide a limited amount of coverage for business equipment, but most standard homeowners' policies exclude coverage for professional liability risk such as lost data, lost income, personal injury that occurs within the home, or other forms of liability threats to both your customers and your suppliers that conduct business at or near your home.

Here a four simple questions for every home-based business owner to consider:

• Does your homeowners policy limit coverage of business equipment? Most homeowners policies restrict coverage in this area, and some even consider operating a home-based business a violation of the 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 in your home.
• Do business contacts or employees visit your home, or do you do business in their homes? Many home-based business owners are surprised to learn that their homeowners policies often don't cover third-party injury claims related to their work.
• Do you keep business data at home? Whether printed out or on a computer, security breaches and technology failures leave companies vulnerable to lost income and client lawsuits. Insurers offer policy options that can help protect home-based businesses from these threats.

Home-based business insurance is some of the most affordable yet most comprehensive coverage for the insurance dollar. We think you will be pleasantly surprised when you consult your independent insurance agent regarding the vast coverage you can secure at valued pricing. Considering the fact that your home-based business is likely the lifeline to you and your family’s future, protecting it at all costs is an absolute mandate.

If you own a home-based business in MD, VA, or DC contact us today and we’ll put you on track to protect yourself, your business, and your family’s future.

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