Posted by : Dan Levenson Wednesday, September 3, 2014
Do you run your business out of your own home? If so, then you need to obtain an add-on (or rider) to your existing homeowner’s policy to cover your business. Many others fail to obtain this add-on because they are confused with what’s already covered by their homeowner’s (or renter’s) policy. You should know that if you failed to disclose your home-based business to your insurance provider, any claim for losses or damages sustained or caused by it may be refused. Your insurer may even cancel your policy altogether.
If your home and business location are one and the same, your best bet is to obtain coverage for your business as well. Did you know that if the delivery guy comes with a business package at your door and he slips and injures himself in the process, you could be paying for his medical expenses from your own pocket? There’s no coverage for this type of injury in your homeowner’s policy, and with the amount of loss you could be facing, you’re sure to regret not obtaining insurance for your business in the first place.
An add-on to your homeowner’s policy generally provides around $2500 additional coverage, which is usually enough for sole proprietorship-type business. However, if you have a lot of valuable equipment and a lot of people visiting your home for business matters, consider acquiring an in-home business policy.