Almost 40 million people work from home, and very few of them have the proper insurance coverage for their home-based business. Many of them just assume that their Homeowner’s Insurance will cover their equipment or their office since it’s part of their house, but the truth is that it probably does NOT. So, consider what would happen if there is a fire, a flood, or some other sort of natural disaster. Unfortunately, unless you have purchased additional coverage, you may find you are out a lot of money. Here are the types of home-based insurance coverage you need.
Replacement Cost Coverage for Home Business Properly
This replaces business personal property or inventory. For instance, if you design wedding invitations and lightning destroys your computer. It also covers your client’s personal property. For example, an heirloom cake topper meant for a wedding cake you are baking.
Coverage for Additional Structures
If you store product in a shed or garage that is not attached to your home, you will need to cover the building separately.
Loss of Income
Even if your Homeowner’s Insurance covers the room and equipment you use for your home-based business, it will NOT cover your loss of income during a disruption in business. For instance, what would you do if your water pipes burst and flooded your basement (where your office is located)? The burst pipes and the basement damage might fall under your Homeowner’s Policy but consider how long it might be before the business is back and up and running as normal.
Business Liability Insurance
Liability insurance can protect you from bodily injury or property damage claims. Let’s consider a piano teacher who works with students in her home. Business liability insurance would cover her in case one of the students tripped down the stairs and hurt themselves. Since they were there as a ‘client,’ this type of claim falls under your business policies, not your personal ones.
Professional Liability Insurance
Mistakes happen and that’s when Professional Liability Insurance pays for itself. This type of policy covers damage to your clients’ property or person as a result of a mistake on your part. For instance, let’s say you are a dog groomer working out of your home. In the process of cutting the dog’s fur, you accidentally knick him with the clippers. The owner feels that a trip to the vet is necessary. Your Professional Liability Insurance could cover the cost if it becomes too expensive.
Where to Get Home-Based Business Insurance in California
If you need more information on insurance for your home-based business or other types of insurance, contact Post Insurance. We are the largest insurance broker in Torrance CA and the surrounding area. Representing over 50 insurance companies, including Traveler’s Insurance, we have the right policy for your needs.
To receive a quote, call 800.262.9998.