How Commercial and Homeowner’s Insurance Works When Your Business Is At Home

The past year with COVID-19 has shifted the business and work landscape, and many people are now working from home. With the loss of multiple industries, there are large numbers of start-up and home businesses. The task list for starting and running your own business is enormous; make time to look at your insurance coverage to ensure you have adequate protection against loss.

Does Running A Business From Home Affect Home Insurance?

You may be wondering if you need a home-based business insurance policy along with your regular homeowner’s coverage. If you are working from home for someone else, your homeowner’s policy will cover most issues. When you are running your personal business from home, many factors will require a separate home business insurance policy. In some cases, you may only need to add an endorsement to your existing homeowner’s policy. Be aware that your home business could negate some of your homeowner’s coverage if you are not appropriately insured. Your Independent Insurance Associates agent will be able to answer your questions and guide you in making the best decisions for home business insurance.

Do Home-Based Businesses Need Insurance?

Depending on your working situation, there are a few simple rules for figuring out your insurance needs. If you work from your home office, you may only need to add some coverage to your existing policies. If you carry inventory or have employees working in your home, your risk factors are high. A commercial insurance policy designed for a small to medium business will cover you if you have any of the following:

• Equipment and technology
• Clients or customers in your home
• Inventory
• Data files
• Business Records
• Work Vehicle

The most significant risk is liability and lawsuits from an employee or client. Your homeowner’s insurance will only cover so much. Additionally, if you sustain a total loss of your home, your business income is not covered. You will also need to discuss identity theft and data theft when choosing your insurance coverage. Working from home puts your family and personal belongings at risk. A thorough discussion with your insurance agent will help you determine your hazards and identify best practices for protecting your professional and personal life.

In-Home Business Policy Or Business Owner’s Policy?

When choosing business-coverage, there are two types of insurance to consider. An In-Home Business policy is the middle ground between adding endorsements to your homeowners’ insurance and needing full commercial coverage. In-Home Business policies are less expensive than a Business Owner’s Policy because the coverage is limited. If you only need to cover your computers and other technology, this could be enough protection. A Business Owner’s Policy will be more expensive but offers far more protection against loss and liability. The best course of action is to discuss your business needs with your agent to determine which policy fits your requirements.

The rapidly changing standards of doing business have been a wake-up call for many. At Independent Insurance Associates, we are fully aware that our customers’ needs are evolving and changing. When it comes to insuring your home and your business, we are happy to guide you in finding the optimal coverage. Every business is unique and designing the perfect business policy takes time and careful consideration. Feel free to contact us with your questions or make an appointment to review and update your existing policies.