Nearly a third of all homeowners operate a home-based business, whether a one-man operation or a small team of employees. But about half of these business owners are underinsured because they missed some key information. It’s commonly thought that homeowners insurance will cover home-based businesses, yet most standard policies will only cover up to $2,500 in property damage with no liability coverage.
Many of these home-based businesses rely on electronic equipment and software, which can easily add up to cost more than a few thousand dollars. Not to mention, loss of critical documents, theft of funds or business interruption could affect daily operations and profitability. In the event of a loss, the only way to protect your business’ assets is to purchase one of the three following options:
- Endorsement (also called a rider): An endorsement on your homeowners policy extends your business’ property coverage to $5,000 (may vary between insurers). This option is ideal for one-man businesses, such as an at-home graphic designer, without an extensive amount of valuable equipment or business-related visitors.
- In-Home Business Policy: This policy extends your business’ property coverage to $10,000 and includes liability coverage up to $1 million. This option is ideal for a business that has more valuable assets and/or has business-related visitors that could make a liability claim.
- Business Owner’s Policy (also called a BOP): This policy bundles common coverages for small to medium businesses to provide broad insurance for a variety of needs, including expanded coverage for damage, theft, loss and liability. This option is ideal for home-based businesses that operate in multiple locations, such as sewing at home and selling your wares at a boutique.
Even though insuring your business costs money that you may not wish to spend, think of the alternative amount you would have to spend if a covered event destroyed your home and business and you didn’t have insurance. It’s more affordable than you may think when you realize that what you’re paying for is peace of mind and financial security.
Contact us today for a free quote. Call Low Rate Insurance Agency
at (817) 469-7283 for more information on Arlington business insurance