What Protection Does it Offer?
Common coverages for home-based businesses include personal business property, business liability, business income, personal and advertising injury, and a few other important coverages. Depending on the type of home-based business you have, not all coverages apply, and other coverage options may be available.
Based on your business needs, you have three basic coverage options to choose from, depending on your level of risk:
Homeowners Policy Endorsement
This provides the least amount of coverage and, therefore, is not ideal for some home-based businesses (depending on the level of risk). It is also very limited to what types of businesses can be covered. While it may provide enough coverage for a direct sales business or photographer with limited inventory and equipment and foot traffic, it’s not enough for someone who employs others, has valuable business equipment and/or inventory, or types of businesses that do not qualify for this endorsement
Business Insurance Policy
A BIP bundles business property and liability insurance into one policy. Created specifically for the small- to mid-size business, a BIP covers your business property and equipment, loss of income, extra expense, and liability, along with a few other essential coverages.
Commercial Package Policy
Any business that represents a higher degree of risk or requiring specialized coverages would be covered through a Commercial Package Policy. As its name suggests, it is also a package policy which includes business property, liability, loss of income, cyber liability, etc. It is more customizable that the other options and can be used for small to large business operations.
What’s Your Risk?
Most homeowners’ insurance policies do cover a very limited amount of business equipment—computers, copiers, and printers, to name a few— but only while they are on your premises and it’s likely that what you own is worth more than your policy’s limits. Also, your homeowners’ liability insurance probably won’t cover any injuries that may occur to the clients that you have on your premises. What’s a home-based business person to do?
We’re Here to Help
Properly insuring your home-based business is crucial to protecting both your business and your home. At Prairie Villa Insurance, we understand the small business owner’s personal and business needs and can help you tailor coverage that’s as unique as the products and services you provide. Contact us today to learn more about how we can help you insure your livelihood.