Roughly 50% of all small businesses are home based. Entrepreneurs running their businesses from home often rely on their homeowners insurance to protect their business. While homeowners insurance protects your house, it likely does not cover parts of your business.
If you're running a home-based business, you should consider a few essential questions:
Do clients or customers come to my home?
Do I have employees in or outside of the house?
Would I lose income if I had to close my business due to damage to my home?
Do I keep inventory or supplies in my home or off site locations?
Do I maintain employee or client records on my computer?
If you answered "yes" to any of these questions, your homeowners policy may not provide enough protection for your business.
Without the right coverage, your business could be responsible to pay out of pocket for: property damage, lawsuits, employee injuries, data loss, and more.
Home businesses may benefit from the following types of insurance:
General Liability Insurance - helps protect you if you’re sued for a variety of reasons. These can include negligence, personal injury or a faulty product.
Business Owner's Policy - helps cover structures on your property where your home based business operates. It can also help cover damage to inventory or loss of income if your home suffers damages. A standard business owner's policy combines property and liability coverage for your business.
Business Owner’s Policy with Endorsements – allows you to adjust your business owner’s policy with endorsements. For instance you can add data breach coverage. This helps protect your business’s stored personal information about customers or employees.
For a free insurance review, give our office a call: 845-255-7806
Statistic from SBA: https://businesssearch.org/faq-small-business/