Starting a Home Business? Make Sure You’re Insured

Have you decided to start a home-based business since the COVID-19 quarantine? You’re not the only one. Depending on the type of business you’ve started, you may want to look into insurance.

Your business’s property needs protection too.  Items such as technology, files, and professional equipments hould all be covered by some insurance. 

A standard homeowner’s policy at Uniamerica Insurance only covers about $2500 in business property.  While this might be enough to get you a new computer, it is certainly not enough to fully protect your business.

Here are some questions to ask to help decide what essential coverage you might need: 

Do customers or clients come to my home?

Do I keep inventory or supplies in my home or at off-site job locations?

Would I lose income if I had to close my business because of damage to my home?

Do I have employees working in or outside of my home?

Do I maintain client or employee records on my computer?

If you answered yes to any of these questions, you may want to review your type of coverage and coverage limits.  Without the right coverage, your business could be responsible to pay out of pocket for property damage, lawsuits, employee injuries and issues related to data loss.

When it comes to coverage, you have 2 primary options:

  1. Homeowner’s policy endorsement—by adding a rider to your existing policy, you can expand your property and liability coverage.  This is an affordable option where you can expect no more than $100 extra per year, in general.  But remember, this rider does not protect you if you also perform business activities at a site away from your home.
  2. Business owner’s policy (BOP)—this type of policy combines property and general liability into a single solution and allows you to tailor to your needs.  You should expect $500 and up per year for this type of coverage.

If you aren’t sure which option is best for you, a Uniamerica Insurance agent for advice.

For more ideas, read our recent article “How to Build an Emergency Fund.”

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