So you just started your own business, congratulations! You’ve got a few clients, money is coming in and you are basking in your entrepreneurial success – what could go wrong? While you may be great at running your business, there are still things that can occur that are out of your control. If something happens, will your home or property insurance provide coverage?
Many of those entrepreneurs think their homeowners’ insurance policies cover their business needs when the unexpected happens, but the reality is that most homeowners’ policies don’t.
Homeowners insurance provides a limited amount of coverage for business equipment, but most standard homeowners’ policies exclude coverage for businesses operating in the home. Most policies don’t cover lost data, lost income or liability. How do you know when you need additional business coverage?
Here are 6 signs you may need insurance for your home-based business
Does your homeowners policy limit coverage of business equipment? Most homeowners policies restrict coverage, and some even consider operating a home-based business a violation of the policy terms. Check your policy to ensure your equipment and business itself is covered.
Do you have an office but work from home? 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 hackings and technology failures leave companies susceptible to lost income and client lawsuits. Insurers offer policy options that can help protect home-based businesses in these instances.
What type of business are you running in your home? Your home business must comply with all federal regulations, health codes and city and state regulations. Failure to do so could make your existing coverage void.
Does your business require you to drive? You may need a separate business auto policy. Your personal auto policy may not cover you if you are in an accident while visiting clients or using your car for other business purposes. Also, if you have employees working for you, you may need workers’ compensation coverage.
Check with your insurance agent to see what policies make the most sense for your business. The right business insurance policy can help protect you against many of the common issues at-home business owners face. Running your own business takes a lot of work, make sure that you have the right insurance policies in place to avoid any setbacks to your success. Still need more information? Call us at this number and we’ll see how we can help. (844) 272-3420
About Ryan Ruffcorn
Ryan grew up in Keokuk, graduated from Keokuk Senior High, and started his agency in Keokuk from scratch in 2003 after having worked for one of the largest international accounting firms, KPMG, LLP.
Ryan is hardworking; his loyal and trustworthy character is exemplified by the way he does business. He thoroughly enjoys helping clients through the insurance buying process to secure coverage for their most valuable assets.