Protecting Your Home-Based Business

More than half of America’s businesses are home-based, according to the U.S. Small Business Administration. But be aware that setting up your headquarters in your home doesn’t mean your homeowners insurance will protect your business. While your homeowners policy may provide coverage for some of the business equipment in your home office, such as your computer or printer, it will not cover you for lost data or lost income.

You have three options to adequately protect your home-based business:

  1. Homeowners policy endorsement. This is added to a homeowners policy to increase coverage on business equipment. You may also have the option to buy a homeowners liability endorsement for protection in the event someone, such as a delivery person or client, is injured on your property.
  2. In-home business policy. An in-home business policy provides more comprehensive coverage for business equipment and liability than a homeowners policy endorsement. These policies, which may also be called in -home business endorsements, vary significantly depending on the insurer.
  3. Business owners policy. Also called a BOP, this plan offers the most comprehensive coverage for small- and mid-size businesses. It protects against many of the same things that in-home business policies, do, but offers even more coverage.

If you are thinking about starting a home-based business or already have a home-based business, call E. R. Munro and Company at 1-877-376-8676 Monday-Friday 9 a.m. to 4:30 p.m. to learn more on protecting your home-based business.