Home-based Business Insurance: Are You Properly Covered?

Operating a business from the friendly confines of your home can offer cost savings, convenience and comfort. However, your risk profile may become more diverse and complicated. Blending your residence with a commercial entity can require you to reconsider various aspects of your life, including your insurance needs. At King Insurance in Jonesboro, Georgia, we have the knowledge and experience to help you secure appropriate coverage.

Do I Need Different Coverage for a Home-based Business?

Generally, when you choose to make your home your business’s base of operations, you’ll need to adjust your insurance coverage. Standard homeowners insurance policies typically exclude commercial operations and related losses, such as incidents damaging your business assets and liabilities involving clients visiting your home. Additionally, even if you have coverage for such situations, your coverage limits may be insufficient. Furthermore, conducting business out of your home may require you to procure or maintain different types of insurance.

How Can I Insure My Home-based Business?

You may have several options for insuring your home-based business. Specifically, the following options may help satisfy your needs:

• Home insurance endorsements—Standard homeowners insurance policies typically do not cover business-related activities and losses. However, you may be able to augment your coverage with an endorsement or rider that can fill these gaps. For example, you could potentially increase your policy’s limits for company assets, such as electronics and inventory.

• In-home business plans—These separate policies can also help cover your home-based business’s assets and other potential losses. For instance, if your home is damaged by a covered peril, such as a fire or break-in, you may be unable to operate your business normally. Fortunately, your insurance could help recoup the income you would have earned during these delays.

• Business owners policies (BOPs)—These insurance products can offer multifaceted coverage in a single policy. Typically, your BOP can include general liability insurance, commercial property insurance and business interruption insurance. These arrangements are often available for small- and medium-sized companies and may provide a convenient and cost-effective solution for satisfying several coverage needs.

We’re Here to Help

Contact the team at King Insurance today to begin analyzing and addressing your home-based business’s coverage needs. Our agents will work with you to identify appropriate options and secure ideal policies.