What Insurance Should You Have if You Work from Home?

Does your homeowner's insurance cover your home-based business? You may think you are safe with the policy you already have, but you may be in for a rude awakening. In most cases, a typical homeowner's insurance policy will provide you with little coverage for your home business. Listed below are policies to consider if you work out of your home.

1. Add a Rider to Current Policy
An economical way to protect your home-based business is by adding a rider to your present policy that will provide you with additional coverage for your company. Of course, this type of
coverage is only appropriate for specific businesses. If you are the only employee of your home-based business, do not have a great deal of valuable equipment and also do not have business clients coming to your home, a rider may work for you. If your business is a bit more complicated, though, this type of insurance will not provide you with adequate coverage.
 
2. In-Home Policy
One step up from a rider to your homeowner's policy is an in-home policy that protects you in matters of injury on the premises and theft. This policy provides you with coverage for your business equipment and will also protect you if an injury should occur on your premises, an important issue if you will have business customers coming in and out of your home. Such a policy will afford protection for up to $10,000 in losses.
 
3. Policy for Business Owners
If $10,000 in coverage will not be enough for your business, you will need a more comprehensive policy. This type of coverage will provide protection in a number of ways.
 
• It will cover loss of business equipment and other assets related to your company, such as important documents and records.
 
• You will have liability coverage should a customer suffer an injury on your property.
 
• This type of policy will also provide malpractice coverage.
 
• You will be protected against income loss through interrupted service to your business due to natural disasters or power outages.
 
• Such a policy may also provide you with coverage if you are involved in an auto accident while using your personal vehicle for the purpose of conducting business.
 
• If you have company vehicles that are used by your employees, they will be covered with this type of policy.
 
• Errors and omissions will also be covered by a good BOP policy. If you provide advice to a client or omit something important in your advice that ends up costing your client money and could result in a lawsuit, this policy will provide you with coverage for such a situation.
 
• Business owners insurance will provide you with more coverage than either of the two previously mentioned options. It goes above and beyond what you will have with a rider or in-home
insurance policy.
 
You can have peace of mind if you know that your home-based business has the proper type of coverage to protect you, your employees and your customers.
 

Author Bio: Charlotte Fletcher believes it’s important for entrepreneurs who work from home to make sure they have adequate insurance for their business. She writes for Monkey Insurance, a site that specializes in auto insurance.