Your home insurance policy may not be providing as much coverage as you think.
Working from home is a dream for many. From being able to work in your PJs to completely avoiding a morning commute, having a home based business comes with many perks. However, just like any other business, you will need to invest in the right insurance policies to protect your home business.
Even though your existing home insurance policy will provide coverage for your personal belongings that you keep inside, it is probably not enough to cover your business equipment. Typical homeowners insurance policies will only provide coverage for $2,000 – $3,000 worth of work based property, leaving your livelihood at risk.
If you have clients coming to your home for business purposes, you also need to consider your liability issues. The existing liability coverage of your home insurance policy may not be able to cover any incidents if a client is injured while at your house.
Even if you are selling products online, such as through an Etsy shop, your inventory and materials are probably not covered. If your home is destroyed or damaged by a fire or a thief breaks in, you would be left covering the losses for your business out of your own pocket.
The best way to keep your home and business covered is with a business owner’s policy. Also known as a BOP, these policies are specifically designed for small businesses, such as a home based business. BOPs are very affordable and will combine property and liability coverage into one simple policy. Typical BOPs will provide between $10,000 and $15,000 worth of coverage, but can be tailored to your specific needs.