If you operate a business from your home, do business inside and outside your home or visit clients at their homes, you probably need additional insurance protection above and beyond what your standard home insurance policy will offer you. Most standard homeowners policies exclude or limit other coverages for businesses operating within the home, like on-site injuries, coverage for employees, business property, etc.
What exactly is a home based business? A home based business is any trade, profession, or occupation – full, part-time or occasional -- that is engaged in earning money or any other compensation.
However... there are a few exceptions... check with your agent to discuss those further!
Working out of your home is one of the fastest growing segments in the business world. Depending on the size and type of business you may have limited to no coverage.
Most homeowners insurance policies have limits for business property at your home. Plus, they have an even more reduced limit for business property away from your home. You might be able to increase these limits with a home based business endorsement. You will need to check with your agent for more information.
If you're thinking that you work out of your detached garage or shed and therefore not in your home, then you'd be wrong. There is probably a limited amount of coverage that will extend to a detached building for business property-- in fact, by operating your business out of that detached structure, you might have just eliminated coverage for that structure from your homeowners' policy.
Did you know that the goods that you have sold, but not yet delivered could also be excluded because they could be deemed as property of others? Or, did you know if you are working on someone else's belongings, like their computer, gun, or furniture, your customer's property might also be excluded?
Do you have a home based business?