Do I Need Home-based Business Insurance?

Owning and operating a home-based company can be an attractive opportunity in the modern business world. Given the array of digital technology available to small business owners and homeowners alike, maintaining this type of arrangement can be both convenient and financially advantageous. However, selecting such a setting for your business requires consideration of additional risks and exposures, including potentially unique insurance needs.

How Does Insurance Differ for Home-based Businesses?

A home-based business owner should first understand that standard homeowners insurance should never  be relied on to provide adequate coverage for their business. Typically,  home insurance coverage  excludes commercial activities and losses. Even if a policy offers some financial protection for business-related incidents, coverage limits may be insufficient and still result in significant out-of-pocket costs. With these things in mind, home-based business owners should explore alternative coverage options.

How to Get Insurance for a Home-based Business

When attempting to acquire suitable coverage for a home-based business, the following coverage options may be available:

• Home insurance enhancements—Although it’s been noted that standard home insurance policies may not provide ample coverage for commercial losses, business owners should consider exploring possible endorsements or riders. Adding coverage for company property, increasing coverage limits or insuring against the losses of customers visiting a home-based business may be attractive opportunities.
• Separate home-based business coverage—Home-based businesses may also consider separate policies, which can typically provide more financial protection than the aforementioned homeowners insurance endorsements. Coverage may include business assets being stored outside of the home, as well as business income insurance for lost revenue and additional costs incurred due to an interruption in everyday operations.

How to Get Insurance for a Home-based Business

Contact the Taylor-Moore Agency to compare coverage options for home-based businesses and get personalized quotes. We’ve proudly served homeowners and businesses in the Derby, VT, area since 1962.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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