Three out of ten homeowners operate a home-based business and over half of these business owners are underinsured. Why? Nearly 40 percent of home-based business owners believe that their homeowners insurance offers sufficient coverage for their business as well. However, this is not the case. Standard homeowners policies cover up to $2,500 in damages to a home-based business. This is often not enough coverage for computer equipment, nor does it cover liability risks. For instance, if a delivery person with a package for your business trips over clutter on your doorstep and gets injured, you won’t be covered for your legal liability to pay his or her medical expenses.
So what insurance options are available to home-based business owners?
- Endorsement/Rider: For a one-person business, such as a home-based tax accountant, you can purchase a rider (also called an endorsement) on your homeowners policy that extends your business’ property coverage to $5,000. This policy is ideal for businesses without a lot of valuable equipment or business-related visitors.
- In-Home Business Policy: This type of policy extends property coverage to $10,000, and also includes liability coverage offered in increments up to $1 million. Coverage includes loss of critical documents, theft of funds, business interruption resulting from damage to your house and more.
- Business Owner’s Policy (BOP): This policy offers coverage on a much broader scale than the in-home business policy, including expanded coverage for damage, loss, theft and liability. A BOP is ideal for home-based businesses operating in more than one location, such as baking at home and selling at a storefront.
Your independent insurance agent will evaluate the needs of your in-home business and help you select the policy that offers the right coverage at the right price. These policies are generally very inexpensive and can save you money in the long run if a detrimental event should occur.
Get the extra protection your home-based business needs. Call
Pro Player Insurance Group
for more information on
Fort Lauderdale business insurance