IN-HOME BUSINESS: The U.S. has experienced rapid growth in home-based businesses in the last decade; there are over 11 million home-based business in the country. The question is, do they have proper insurance?
Most home-based business owners assume that their “homeowner policy” provides coverage for their business. That policy specifically excludes business liability exposures and offers only limited coverage for business personal property (BPP).
If your home office is your primary business location, you should consider a separate policy. Using a detached structure on your residential property (as a business location/storage) could possibly void coverage for the building or BPP. If you have employees, you should be aware that municipalities often have codes regarding the maximum number of employees permitted in a residential area.
If you only occasionally work out of the home, an “endorsement” providing liability might be appropriate. If you only receive business deliveries such as FedEx/UPS, we suggest a liability coverage endorsement.
Other areas of exposure for businesses could be workers compensation, employment practices, or cyber and professional liability.
Contact us for more information.