If you’re running a business from home, you’re not alone, as there are currently about 15 million home-based businesses in the United States. That means a little more than half of small businesses in this country are home-based.
Unfortunately, the majority of those businesses lack proper insurance coverage, as 60 percent of them do not have home-based business insurance. If your company is part of that majority, it’s a good idea to find out more about this type of insurance—what is it, and why do you need it in the first place?
What Type of Company Needs Home-Based Business Insurance?
Every business can benefit from insurance, and the right coverage will protect the owner and any employees from potential liabilities. But it’s especially crucial for certain types of businesses.
In particular, if any of the following are true of your company, you should consider getting home-based business insurance:
- You keep inventory at your home
- You have expensive business equipment at your home
- You have employees who work in your home office
- You keep sensitive information about employees or customers on your computer
- Your customers or clients visit your home often
- You or your employees use personal vehicles for business
If any of these conditions apply to you and you don’t yet have a home-based business insurance policy, it’s time to change that.
Types of Coverage to Consider
So the necessity for home-based insurance is there, but what kind of coverage do you need? There are a few types of policies that can protect your company. The one you should choose will depend on the size of your business and the amount of coverage you need. These are some of the most common home-based business insurance options:
Endorsement on Your Homeowner’s Policy
Some business owners assume their homeowner’s insurance would cover theft or damages involving their home-based business. But the fact is that most homeowner’s policies have a limit of $2,500. If your business equipment or inventory is worth more than this, you should add more coverage to your homeowner’s policy. Doubling or tripling that limit to cover your business investments will give you peace of mind.
You should also think about adding liability coverage to your homeowner’s policy, as this will cover costs if someone is injured on your property and requires medical care.
In-Home Business Policy
Some insurance companies feature in-home business insurance coverage that features more protection and higher limits than homeowner’s policies while still offering lower limits than commercial policies. This allows you to get all the coverage you need at a reasonable price.
By adding this, you can get general liability and personal property coverage that protects your inventory, equipment, and your company in case of vandalism, theft, third-party lawsuits, and other expensive issues that might arise.
Business Owner’s Policy (BOP)
Finally, your company might benefit from a commercial business owner’s policy that covers general liability, business income, and your property. This policy is usually best for businesses that require customers or clients to come to the house often, or that have expensive equipment or inventory in the home.
In many cases, you can customize your BOP to ensure it has the coverage you need. For example, you can add workers’ compensation if you have employees, or business auto insurance if you and your staff regularly use vehicles for your business.
Let Bethany Insurance Keep You Covered
Bethany Insurance understands the different policies your business is eligible for, and we’re ready to help you find the home-based business insurance plan that works for you.
If you want to protect your company by getting home-based business insurance today, or if you have any questions about the coverage you need, contact Bethany Insurance today to learn more!
