While home businesses are very popular, many do not have the insurance protection they need.
"When people work out of their home, they think," Well, I have to cover owners, "says Terry McConnell, Vice President, Personal Lines Underwriting." But politics owners almost never covers the company. "
What homeowners policies do not cover
Many-but not all-homepreneurs need additional protection beyond their . policy owners Indeed, most homeowners policies lack these important safeguards:
- personal property business
most homeowners policies provide limited coverage $ 500 to $ 1,000 for tools, machinery or other equipment that you use exclusively for your business. If your property is worth more, you definitely need additional coverage. - Local responsibility
Suppose you cut the hair in your basement, and a customer trips and falls on a movable basketball. This client can sue you. If he does, you want to premises liability from your homeowners policy does not cover liability claims filed by a business customer. If the injured client is a friend hanging around after a haircut for coffee, you might still be responsible for their injuries. "If there is no business existing policy, there is a gray area in this situation," McConnell said. "But if you have both types of insurance, you are guaranteed to be covered . "regarding accountability, it is better to be safe than sorry since these claims tend to be the most expensive. - Offline premises liability
If you think an accident does not occur on your property is not your problem, think again. business owners Home-based are often responsible for injuries to customers or property supports their customers away from home. for example, a realtor might be liable for injury to a potential buyer incurs in a house showing. - professional liability
companies that offer services or professional advice should also consider purchasing professional liability insurance. Professional liability cover negligence claims and defense costs of prosecution, even if they are unfounded. - The business income and extra expenses
business income coverage ensures that you receive your regular income when covered damage loss of your premises. kicks extra cost if you need to rent temporary space or equipment after a covered loss.
Three ways to get the coverage you need
If you need more coverage that your homeowners policy. offers, you will need to consider the size of your business, the kind of work you do, how many guests visit your home and how often you work off-site
The most common coverage of the three options include
- approval of the policy owners
endorsement is often the best option for small transactions minimal business and customer visits. For starters, it increases the level of protection for your business personal property. You can also buy liability insurance business if a small number of customers come to your home. - Politics in home business
This option often works better for a medium sized company with more expensive equipment and a stable flow customers visiting a house. Most policies reimburse you for the loss of important documents and records, the real estate company accounts receivable and off-site. Some even include business income and extra expense and cover a small number of full-time employees. Policy - business owners (BOP)
If you have more than a handful of employees, many tools or equipment costly or needs a high level of liability coverage, a BOP is probably your best choice. Indeed, it offers the widest amount of coverage for business property and equipment, loss of income, expenditures and additional responsibility.
A policy of the balance of payments should be purchased in addition to a homeowners policy for a homeowners policy is still needed to cover the building, personal property and liability that is not covered by the policy of the balance of payments
depending on the policy you choose, you might also consider these additional guarantees :.
- workers' compensation if you have employees
- Disability insurance to protect your income if you are ever injured and can not work
- auto insurance company if you use vehicles for business
Because the insurance companies is generally far more complex than personal insurance, it is best to talk with someone like a ERIE insurance agent about it. He or she can evaluate where are your coverage gaps and endorsement or policy would better protect your business.
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