Operating a business from your home can be a rewarding experience.
However, a typical homeowner’s policy provides minimal coverage for business property on and off premises; as well as no liability coverage related to business activities. An individual with a home based business faces many potential risks and without proper coverage there may be several gaps.
What’s covered under a home office insurance policy?
- Off premises coverage
- Loss of Business Income
- Limits available to $1 million for Liability and $100,000 for Business Personal Property
- Optional Coverage for Money & Securities
- Equipment Breakdown
- Professional Errors & Omissions sublimit for select classes included in the basic rate
- A.M. Best A++ rated company
Example claims we have seen.
- You operate a small eBay business and have an inventory of $7,500. A fire in your home destroys or damages your inventory. The Home Based Business policy will provide coverage up to your Business Personal Property limit.
- A customer visiting your home for business slips and falls. Since the customer was at your home for business purposes the Home Based Business policy will provide the needed liability coverage excluded under your homeowners policy.
- Your laptop is stolen while you are visiting a customer. The Home Based Business policy provides up to $5,000 to replace your laptop while away from the residence premises.
- You are working a trade show and someone trips and falls over your display, the Home Based Business policy will provide the liability protection you need. Your homeowner’s policy provides no coverage since this was a business event.
- Your Home Based Limited Liability Corporation suffers a power surge damaging your computer, telephone, and fax machine, but your homeowner’s policy provides no coverage since the property is owned by the LLC and not the homeowner. Your Home Based Business policy will replace the damaged equipment.
- A fire at your home makes it uninhabitable and your home based business must be shut down. Your Home Based Business policy provides the needed lost income and additional expense coverage.
- A power surge caused electrical damage to your home based bakery refrigeration system. The system failed and you sustained food spoilage, repairs to the refrigerator and one day lost income. Your Home Based Business policy provides the equipment breakdown and business income coverage you need.
Contact your local Marshall & Sterling office to learn more about your business insurance options. We will help you find the protection that best fits your unique needs and budget.