If you run a business out of your home, you should take note that your homeowners, condominium or tenants policy does not automatically protect your business. In most cases, it does not. In fact, unless your insurance company is aware of your home-based business, you may even void your home policy.
What’s more, is that many home-based businesses are either underinsured or uninsured because the owners thought their business activities are covered under their homeowners policy.
As a business owner you’re exposed to insurance risks that aren’t covered under a standard homeowners policy. For example, if your computer is stolen, you may find that it’s not covered by your homeowner’s policy because business property is excluded. Also, if a delivery person slips and falls when delivering a package, you could be sued and find out you’re not covered for injuries associated with business deliveries. And, if your house burns down, you may find that your fire coverage is void because you didn’t tell the insurance company that you were using your home for busines.
Fortunately it’s easy and affordable to protect yourself and your business by adding a Home- Based Business extension to your property policy. For most home-based businesses, this extension is all you need to protect your property and cover any liability exposure arising from your home business. For certain types of businesses such as financial professionals, salespeople or providers of specialized services, you may be exposed to different risks
You will want to be sure to let your insurance broker know what type of business you are running, so they can make sure you get the best protection at a competitive price.
Your business is more than a job; it’s part of your life. Even a small home operation needs protection against the risks of doing business. There is no better time like the present to get in touch with your insurance broker to ensure you are properly protected.