|
How to Buy Business Insurance for My Home Business
Author David Schneider | Nov 14,2007
|
Operating a business out of your home does not mean it's covered under a homeowners insurance policy. Separate coverage is necessary to protect your business. Find out how to buy insurance for your home business.
Why do I Need to Buy Business Insurance for My Home Business?
Protecting your business investment is essential for its survival. Your homeowners insurance typically does not cover anything business-related, even if it occurs in the home. Any equipment used to operate your business will not receive sufficient protection under a homeowners insurance policy. What’s more? Liability damages as result of your business are specifically excluded from most homeowners insurance policies.
You have a few options when it comes to buying business insurance for your home business. As a bare minimum, most home businesses require professional liability. Depending on your business, you may need to purchase additional coverage.
Options for Insuring Your Home Business: Purchase an Endorsement
Consider purchasing an endorsement on your homeowners insurance policy. An endorsement for your home business is a fairly inexpensive method for increasing coverage for business equipment. Cost for an endorsement on your homeowners insurance policy is usually around $25 to double your business equipment coverage. You can usually purchase an endorsement for up to $10,000.
Liability endorsements can also be added to a homeowners insurance policy. In order to be eligible for a liability endorsement to protect your home business, a low level of business-related traffic is required. New media consultants are perfect candidates for a liability endorsement, as business is typically conducted over the phone and online.
Options for Insuring Your Home Business: In-Home Business Policy
An in-home business policy offers more widespread coverage than purchasing endorsements to a homeowners insurance policy. Like endorsements, an in-home business insurance policy provides protection for business supplies and liability coverage. An in-home policy also covers loss of business documents, business interruption as a result of disastrous events and extra expenses for operating a business while the home is being rebuilt. In-home business policies also make it possible to operate a home business with a few employees.
Options for Insuring Your Home Business: Business Owners Policy
A Business Owners Policy, or BOP, is for a small business that may be experiencing some growth. A BOP offers more comprehensive coverage than endorsements and in-home business policies. However, there are coverage limits on a BOP. The size of your business may require additional coverage, such as worker’s compensation, commercial auto insurance and health insurance.
Take an Inventory Before You Buy Insurance for Your Home Business
Before purchasing business insurance for your home business, take an inventory of supplies and equipment to determine your coverage needs. An accurate inventory helps to avoid purchasing too much insurance for your home business. Continual inventory updates ease the process of filing an insurance claim.
Lower the Risk of Disaster and Save Money on Insuring Your Home Business
You can lower the cost of insurance for your home business with a little damage control. Disaster-proof your home with smoke alarms, sprinklers and a security system. Ask your insurance agent about more ways to increase home safety.
Shop Around for the Best Home Business Insurance
The type of insurance needed for your home business varies depending on your industry. It’s wise to shop around for different insurance packages. Contact a trade association and learn more about locating adequate coverage. If the trade association works with a designated insurance company, you may be able to qualify for a group rate. You can also research different insurance policies online, comparing quotes and types of coverage. A Web site that specializes in quote comparison can provide you with multiple offers instantly, and at no obligation.
Operating a business out of your home does not mean it's covered under a homeowners insurance policy. Separate coverage is necessary to protect your business. Find out how to buy insurance for your home business.
Why do I Need to Buy Business Insurance for My Home Business?
Protecting your business investment is essential for its survival. Your homeowners insurance typically does not cover anything business-related, even if it occurs in the home. Any equipment used to operate your business will not receive sufficient protection under a homeowners insurance policy. What’s more? Liability damages as result of your business are specifically excluded from most homeowners insurance policies.
You have a few options when it comes to buying business insurance for your home business. As a bare minimum, most home businesses require professional liability. Depending on your business, you may need to purchase additional coverage.
Options for Insuring Your Home Business: Purchase an Endorsement
Consider purchasing an endorsement on your homeowners insurance policy. An endorsement for your home business is a fairly inexpensive method for increasing coverage for business equipment. Cost for an endorsement on your homeowners insurance policy is usually around $25 to double your business equipment coverage. You can usually purchase an endorsement for up to $10,000.
Liability endorsements can also be added to a homeowners insurance policy. In order to be eligible for a liability endorsement to protect your home business, a low level of business-related traffic is required. New media consultants are perfect candidates for a liability endorsement, as business is typically conducted over the phone and online.
Options for Insuring Your Home Business: In-Home Business Policy
An in-home business policy offers more widespread coverage than purchasing endorsements to a homeowners insurance policy. Like endorsements, an in-home business insurance policy provides protection for business supplies and liability coverage. An in-home policy also covers loss of business documents, business interruption as a result of disastrous events and extra expenses for operating a business while the home is being rebuilt. In-home business policies also make it possible to operate a home business with a few employees.
Options for Insuring Your Home Business: Business Owners Policy
A Business Owners Policy, or BOP, is for a small business that may be experiencing some growth. A BOP offers more comprehensive coverage than endorsements and in-home business policies. However, there are coverage limits on a BOP. The size of your business may require additional coverage, such as worker’s compensation, commercial auto insurance and health insurance.
Take an Inventory Before You Buy Insurance for Your Home Business
Before purchasing business insurance for your home business, take an inventory of supplies and equipment to determine your coverage needs. An accurate inventory helps to avoid purchasing too much insurance for your home business. Continual inventory updates ease the process of filing an insurance claim.
Lower the Risk of Disaster and Save Money on Insuring Your Home Business
You can lower the cost of insurance for your home business with a little damage control. Disaster-proof your home with smoke alarms, sprinklers and a security system. Ask your insurance agent about more ways to increase home safety.
Shop Around for the Best Home Business Insurance
The type of insurance needed for your home business varies depending on your industry. It’s wise to shop around for different insurance packages. Contact a trade association and learn more about locating adequate coverage. If the trade association works with a designated insurance company, you may be able to qualify for a group rate. You can also research different insurance policies online, comparing quotes and types of coverage. A Web site that specializes in quote comparison can provide you with multiple offers instantly, and at no obligation. |
|
|
Print
E-mail
Del.icio.us
Digg
