For home business you may not have enough insurance to protect your home, personal property, and business equipment. A typical home-based insurance provides much coverage for home-based business equipment, which is usually enough to cover all of your business property. You may also need coverage for liability and lost income. There are many insurance companies which differ considerably in the type of business operations they will cover under the various options of policies they offer. So it is wise to shop around for coverage options as well as price.
To insure your business there are three basic choices. They are: Homeowner’s Policy Endorsement, In-home business policy, Business Owner’s Policy. The best among these three will be determined by the insurance agent after understanding the nature of your business.
Homeowner’s Policy Endorsement: In this policy you may add a simple endorsement to your existing homeowner’s policy to double your standard coverage for business equipments. The homeowners liability endorsement is also typically available only to businesses that have few business-related visitors. These endorsements are available in any insurance companies.
In-Home Business Policy: In-home business policies allow a certain number of full-time employees, generally up to three. These policies generally include broader liability insurance for higher amounts of coverage. This policy offer protection against lawsuits for injuries caused by the products and services you offer. In-home business policies are available from insurance companies that sell stand alone in-home business policies.
If your home-based business operates in more than one location, then business owner’s policy is an excellent solution for home-based business as it provides coverages on a much broader scale than the in-home business policy.