In-Home Business

The dream of many Americans is to be their own boss. Most people who start a business will run the business out of their home. Who isn’t familiar with Apple Computer’s start in Steve Jobs parent’s garage?  Most people think the insurance they have in place on their home is all they need. What they don’t realize is most homeowner’s policies have very specific exclusions for the purpose of excluding any business liability and very limited coverage for any business property.
What is needed for a business is business insurance. There are some insurance companies that have the ability to add an in-home business endorsement to your regular homeowners. There are also some separate business policies that have been designed for many low risk types of businesses. Some businesses will not qualify for either of these products. At that point your agent will recommend a more traditional business insurance policy.
A common practice now is to work for a company remotely. If you are not the owner of the company, then you usually do not need separate insurance for the business. If you have expensive equipment or business property at your home you should discuss who is responsible for any damage to this property with your employer. The business’ insurance may extend to cover the equipment. If you own it personally you may be able to add or increase the business property limit on your homeowners policy.
What is important is to let your homeowner’s agent know if you work from your home. They should be able to help you determine the appropriate way to provide insurance for your specific business.
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