A Homeowner’s Policy Falls Short For Home-based Businesses
Business Insurance is necessary for all types of businesses, including home businesses. Many home business owners don’t realize that their homeowner’s policy may not cover incidents that occur in the normal course of running a home business.
For instance, if there is a fire in the house and the equipment in the home office is destroyed, the homeowner’s policy may not provide coverage for that damage. If your home is the base for your small business insurance it is an absolute must to make sure that you’re fully protected. A home business rider to your home owner’s insurance may or may not provide all the protection you need.
An in-home business policy provides even more protection than a home insurance rider add-on. In-home business polices cover contingencies such as employee theft or the loss of important documents. It can also provide liability if employees are coming in and out of the home as well as coverage for business equipment.
A business owner’s policy (BOP) is probably the best bet to make sure that all the bases of a home business are covered. If a delivery person brings a business package to your door and falls on the steps, the homeowner’s insurance will not cover the injury. Small business liability insurance is part of the coverage of most business owner policies and help provide the peace of mind you need for your home-based business.
Because a business owner’s policy offers a higher amount of protection than an in-home policy or a homeowner’s policy rider, it provides greater protection against possible lawsuits in addition to better coverage for other business aspects. If your product causes any injury to a customer, a BOP may offer protection against any resultant lawsuit.
Another important aspect of insuring your home-based business is the liability of your product. If you produce a food product for a product that has packaging that could cause injury—like a glass bottle, for instance—you may need a special policy in addition to the basic BOP.