As more people start home-based businesses or work from home, the issues on how to properly insure them increase. While it’s true the standard homeowners policy does include some, limited, property insurance, those limitation might be larger than you think and for the most part there is NO liability coverages for business operations under a homeowners policy. Business operations might just include a client stopping by to pick something up and getting hurt on your premises. The limitations to property could include there being NO coverage for a detached garage or other outbuilding if it’s used at all for business purposes and NO coverage for products held for sale.
So, what’s the best way to insure a home-based business? There are several options:
1.) Endorse your homeowners policy. Endorsements are additions or subtractions to the base homeowners policy that increase (or decrease) coverage. In this case, we’d be talking about adding a home-based business endorsement which would provide some additional property coverages, and may provide for some liability protection as well.
2.) Buy a businessowners policy. A businessowners policy is basically a homeowners policy for a business. It provides property and liability coverages and generally includes other common coverages needed by a small business.
3.) Buy separate commercial property and/or commercial liability policies. Depending on the type of business you run out of your home, you may not be eligible for a businessowners policy. In this case, we can work with you to find separate coverage for your property and liability needs.
Every situation is different, so we would need to sit down with you to understand your needs and make sure you are being covered in the most effective and cost efficient way.
About Trimble Insurance
Trimble Insurance is a family owned business spanning four generations. Serving the personal and commercial insurance needs of Delaware County and all of Central Ohio, Trimble Insurance is a leading independent agency. In addition to homeowners and auto insurance, Trimble insures businesses of all types and specializes in contractors, energy, bonds, manufacturing, auto related, distributors, farms and agribusiness, and other industries. www.trimbleins.com