Working from home has its advantages. It's cheaper than having a separate location and provides multiple tax benefits. You spend less time on the road and more quality time building your business. If you've decided to work from home, you will need to think about how you will ensure your business. Your homeowner's policy will only cover so much. A good business policy will keep your business financially secure and prevent unnecessary losses.
No matter how big or small your business may be, you must have a commercial policy that meets your needs. Your homeowners' policy will typically not cover any claims related to your small business. Most homeowners' policies will contain exclusions and limits directly related to any business activities you may take part in. While you may be able to purchase a rider or endorsement to cover your home-based business, you should consider purchasing a commercial policy designed for your particular business.
Owners of small, home-based businesses can purchase commercial insurance in three ways. Endorsements can be purchased and included with your homeowners' policies. You can also opt for an in-home business policy solely for your home-based business. Your final option is to purchase a business owner's policy (BOP). Each type of policy has its benefits and will provide the coverage you need based on the size and demands of your business. Working closely with your insurance agent will allow you to learn the pros and cons of each policy and which one will work best in your situation.
Depending on your business type, an Errors and Omissions policy may be a good choice. If you drive for your job, you should purchase a commercial auto policy in case your personal auto insurance will not cover your car if you have an accident while working. Worker's Compensation insurance is mandatory in most states if you have a specific number of employees. If you need more clarifications about Workers Comp coverage, you will want to talk to your insurance agent.
Being able to work may make you the envy of all your friends, but it also means that you need to be extra diligent when it comes to insuring your home and business property. Keeping the insurance for your home and business separate is the best way to ensure that both entities are sufficiently covered with no gaps to cause a lapse in coverage.
Contact us at Little & Sons to learn more about a business insurance policy and how it will protect you from any financial losses if a claim is filed against your business. Our agents can walk you through all the details to ensure you get the best coverage possible for your business. We will also evaluate your homeowners' coverage to ensure that you have sufficient coverage with that policy.