More than half of America’s businesses are home-based, according to the U.S. Small Business Administration. If you currently run a home-based business or are considering it in the future, don’t make the mistake of assuming your homeowners insurance policy provides coverage for your business needs when the unexpected happens.
A common misconception is that homeowners insurance policies offer coverage for a home-based business. However, homeowners policies usually provide no more than $2,500 to replace damaged or stolen business equipment.
Standard homeowners insurance policies provide neither business liability nor business income (also known as business interruption) coverage for home-based businesses. These forms of protection are necessary in case an employee or customer is injured on the premises.
When insuring your home-based business, there are three basic choices, depending on the nature of your business:
While most homeowners insurance policies do cover a limited amount of business equipment—computers, copiers and printers—it’s likely that what you own is worth more than your policy’s limits. Also, your homeowners liability insurance probably won’t cover injuries that may occur to employees or clients on your premises.
Properly insuring your home-based business is crucial to protecting both your business and your home. At Neckerman Insurance, we understand the small business owner’s personal and business needs; we can help you tailor coverage that’s as unique as the products and services you provide.
Contact us at 608-238-2686 to learn more about how we can help you insure your livelihood.
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