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Do You Need Insurance for a Home-Based Business?

January 17th, 2024 by

When it comes to running your own business, you should always make sure you’re covered by liability insurance – even if you work out of your home!

Let’s explore the options for a home-based business owner and cover which insurance policies may be the best options for you.

The ‘Business Owner’s Policy’ (BOP)

Nearly all business owners should have what is known as a “BOP” or business owner’s policy. This can be a great option for a home-based business, as it does often cover the property. Be sure to ask your agent that’s the case.

The BOP typically also covers interruptions in business, continuation insurance, and liability policies. However, these types of policies often do not cover things like professional liabilities, so depending on the nature of your business, additional policies may be necessary.

What About My Homeowners’ Policy?

A basic homeowners’ policy may help when it comes to your home-based business. For example, you may have a limit already written into your policy that allows you to claim a set amount of damages. For example, your homeowners’ policy may cover your electronic equipment or furniture, but also may come with a limit of $1,500. If your home office were to burn down or be destroyed in a storm, it is likely that that small amount would not go very far.

Adding an “In-Home Business Policy” can be a smart compilation to go along with a homeowners’ policy to be sure you are covered for all business expenses, too.

Tips for a Lower Premium

Oftentimes, it is wise to start your home-based business with a basic BOP policy, adding necessary complementary policies as you grow. However, other options will protect your home and business and also lower your monthly premiums, no matter the policy you purchase.

Many policies will discount rates for taking precautionary measures, such as:

  • Installing fire alarms and extinguishers
  • Adding security alarms or cameras
  • Have a safe for any valuables, especially cash
  • Ensure a safe working environment (check wiring, trip hazards, etc.)
  • Only allow those with clean driving records to operate company vehicles

Review your options with your trusted insurance agent!

Seek a Helping Hand

Ultimately, no two businesses are exactly the same. Even home-based businesses can vary from owner to owner. What your precise needs are may not be the same as the home business next door.

In order to truly be sure you are properly covered, it is best to go over these topics with a seasone, independent agent. I know the realities of owning your own business. My office is an independent sales location, meaning I am able to shop countless policy options to find the best fit for your unique needs.

Allowing my experience to help you stay protected just makes sense. You’ll have plenty of duties as a business owner, and you’ll want to be sure that hard work remains safe with sensible and encompassing insurance policies at rates that won’t hurt your bottom line.

To review your home-based business needs, reach out to my office or request a quote right from my website.

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