Whether you're picking up some extra cash with a sideline home business or you telecommute full time, you might not have the right insurance coverage. By and large, policyholders who work from home are completely unaware their homeowner's insurance may not cover their business—these individuals need an additional business policy.
Even if you think your home business is too small to require insurance or that your homeowner's policy will cover your needs, you might need to know the facts about insuring your home business. You home insurance will definitely cover some things, but if your work requires you to use a great deal of specialized equipment, be it electronics or tools, it they are instrumental to your income, your homeowner's insurance will only cover between two and three thousand dollars.
You can also be sure that your ordinary homeowner's policy will not cover things like liability: if you invite clients or receive deliveries inside of your home, personal injuries and other damage that might occur should be considered. Any records keeping items, whether these are physical ledgers, file cabinets, computers, tablet devices, or external hard drives should also be insured (and backed up) to avoid a serious blow to your home business. If items central to your business are ruined in a home disaster, the insurance company will not protect you from loss of income. And if you have employees that come into your home to work, you absolutely must have workers' comp. You could find yourself in a real pickle if an employee is injured in your home: you are responsible for his or her medical expenses as well as any lost income while he or she is on the DL.
You have a couple of options when it comes to obtaining proper coverage to cover the equipment you rely on; to protect you from loss of income in the event of disaster; and to protect visitors, clients, and employees from injury. Because of the increasing numbers of individuals who either work from home or operate small businesses from their homes, many insurance companies allow provisions for home businesses. What's more, you may be able to include liability coverage if your home business revenues are not too high. You may also opt to invest in a strictly business insurance policy. This will give you the opportunity to essentially create you own coverage plan form the standard small business and home business policies they offer. Or, perhaps an umbrella policy, which will protect you from life's unexpected events, is the right choice for you.
Umbrella policies bridge the gap between business policies and home policies to cover the in-between elements, for example, if your personal vehicle is also used for work and you are in an accident that is not related to work, your umbrella policy will extend to cover the income lost as a result of any damage to the car. An umbrella policy will also offer liability coverage to anyone who is injured inside your home.
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