Is My Business Covered?
There answer to this is simple: usually not. While it may be easy to assume that your home insurance will cover your home business, this is typically not the case. This is because there is another set of risks to consider when you are running a home business. For instance, you could have an employee or a client at your house and they could injure themselves. Without liability coverage, you would have to pay for that out-of-pocket. This is because you were conducting business at the time that the incident occured and is therefore not covered under your regular home insurance.
Another thing to consider is your equipment. Many home insurance policies will not cover the equipment that it takes to run your home business. If it does, it will only cover very little. This means that you could have your things robbed from your home and, as long as they are used for the sake of your business, your insurance company could deny your claim.
What Questions to Ask About Your Home Business
These types of incidents are what make it so important for home business owners to have additional coverage. The type of coverage offered by your home insurance is typically not going to be enough to cover your home business, and the last thing you want is to have to utilize all of your savings to replace that equipment or pay off that lawsuit.
When you sign up for insurance for your home business, there will be a number of questions you will need to answer in order to ensure that you are selecting the policy that is right for you. These questions will have to do with the amount of risk that your business incurs, the type of equipment you use to conduct your business, if you have any employees, if you utilize anything that could be considered dangerous such as chemicals or hazardous materials, and an assortment of other questions. You may also be asked how many clients you see in your home business.
There are certain specific cases where people who own home businesses could simply receive an endorsement from their home insurance company for their home business. This is only in a few cases and only particular professions qualify. To determine if your profession and home business are eligible, contact your home insurance company.
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Trueway Insurance is an insurance company located in Lake Worth. To learn more about what we do and to get home insurance quotes that will fit your budget and needs, contact us today.