Running a business out of your home has become increasingly common. Not only is it more convenient, but you don’t have to worry about the extra rental, utility, and commuting costs that come with officing elsewhere. Some people assume that they can save further by using their home insurance policy to cover their business well.
After all, your business is inside of your home. Doesn’t that mean your home insurance covers it? Unfortunately, no.
In the same way traditional home insurance policies don’t cover rental situations, they also don’t cover business needs. For that, you will need some type of the business insurance. The exact coverage can vary greatly depending on the nature of your business and your general exposure to risk.
Liability Coverage for Home-Based Businesses
Even a home-based business has certain liabilities they need to be protected against. There are a number of situations where a client, customer, or employee may try to sue you. A liability policy will provide protection against this.
A lawsuit can be especially damaging for sole proprietors. Since they are not a separate legal entity, a suit can go after personal wealth and belongings.
A liability policy can cover injuries that occur on your property, as well as on jobsites.
Business property insurance
Even as a home-based business, you’ll likely still have assets that belong to your company. Whether it’s a computer, a desk, a phone, or any number of other items, your home insurance policy may not cover the replacement of business property if it’s destroyed or stolen.
This is where business property insurance comes into play.
If you produce and/or store products and inventory on your premises, business property insurance will cover this as well.
BOP for In-Home Businesses
A business owner’s policy (BOP) is a bundled insurance plan designed to provide liability coverage, property coverage, and other custom coverages in a single, affordable policy. Though BOPs are typically designed for companies with physical locations like restaurants or retail stores, some home-based businesses may still benefit from a BOP.
BOPs can easily be customized to meet the specific needs of your business. This not only simplifies your insurance, but it can save you money every month.
Generally, a BOP covers:
- On-site accidents
- Property damage
- Loss of possessions
- Loss of third-party items under your care
- Cyber threats
- Loss of income/business interruption
Not every home-based business needs a BOP, but there are situations where it can be beneficial.
Determining What You Need
These days, there are a wide range of businesses being ran out of homes. The coverage needs of your particular business can be wildly different from someone else’s. It’s critical that you have a policy designed to cover your needs at a price that you can afford.
That is why every business owner should meet with a knowledgeable insurance agent.
At Link-Hellmuth, we are highly experienced in both home and business insurance. We can easily help you identify what needs coverage and what doesn’t. We work with all major insurance companies, shopping around to get you the best price possible.
With Link-Hellmuth, properly insuring your home-based business is simple and affordable. For both home insurance and business insurance in the Springfield, Ohio area, Link Hellmuth will make sure you’re properly covered.