Do you work from home full-time or part-time? Chances are your homeowner’s insurance doesn’t cover your home business, or at least not to the extent you need it to. For one thing, insuring just the physical assets of your business (computer, home-office furniture, fax machine, etc.) doesn’t encompass every aspect of your business.
To figure out how much and what kind of coverage you need, consider possible accidents; hopefully, nothing untoward will befall your business or your home, but you should plan for any eventuality so you will not suffer financially if something comes to pass.
If a fire were to destroy your home and office, consider where you would work until your home was rebuilt. You would probably need to rent a temporary office space somewhere. Does your current insurance policy cover this?
Do you retain any sort of client information, either on your computer or in files? If your computer was ravaged by a virus, or your files damaged in a fire, and you didn’t have copies of all that information, your clients might hold you liable for the loss.
If you have clients visit you in your home office, your homeowner’s insurance might not cover their medical expenses should they trip and fall down your stairs or some such.
Do you have any employees? Even part-time employees may affect the kind of home business insurance you need.
As you can see, there are number of factors you need to take into consideration when insuring your home business. Talking to your current homeowner’s insurance agent can probably get you started in the right direction. You might not even need separate home business insurance. Depending on your business, you may be able to receive coverage for it simply by enhancing your current homeowner’s insurance policy.
Tip: If you bundle your policies (i.e. car, homeowners, business), you may qualify for a discount.
As more and more people pursue home-based businesses, insurance companies are starting to offer more comprehensive coverage at better rates. Make sure to talk to a number of insurance agents to find out who has the best rates, most options, and best coverage.