Solutions Delivered! What Insurance Do I Need to Run a Home-Based Business?
Coverage for a home-based business is often overlooked. Homeowners running their business from home need to be careful. Many assume their homeowner’s policy covers their business activities. Others may not even be thinking about coverage for their business activities. This could be disastrous. They may not have coverage if a claim arises.
What coverage do I have for my home-based business?
A homeowner’s policy provides minimal coverage for small home operations. Limitations include:
- Coverage for business personal property. This coverage varies by carrier. Anywhere from only $500 up to $5,000
- No coverage for loss of income if your home is damaged and you cannot run your business
- No coverage for injury or property damage as a result of business activities
These are only a few of many examples. So, if you operate a home-based business and have not notified us, it is time you do so. Not only to avoid potential gaps in coverage but also to ensure that a claim does not get declined. You may run the risk of policy cancellation or a claim denial based on concealment. Be sure to detail all the uses of your home to us. This way your agent makes sure you get proper coverage.
What can we do to make sure there are no gaps in your coverage?
First, do a thorough review of your business:
- Planning on hiring any employees?
- Is there foot traffic from customers or delivery drivers at your home?
- Have signage in your yard advertising your home as the main location of the business?
- Operating your business solely in a detached structure located on the same premises as your home?
Do any of these apply to your business? Your business may be a decent-sized operation. Make sure your product, liability, and employees have enough coverage. As we always say, the worst time to find out you do not have coverage is at claim time.
What should I do moving forward?
Conduct a thorough review of your business and your business plans for the future. Then give our agency a call. Omega offers advice for home-based insurance. See if your business can be endorsed for coverage under your homeowner’s policy. Find out if you need a separate General Liability or Business Owners Policy.
Do you have any concerns about the coverages on your policy? Give us a call, 405-769-6701, or stop by! We are always here to help.