With the aftermath of the pandemic, many companies are contemplating having their employees continue to work remotely. But also in the aftermath, there are many people, particularly entrepreneurs, who have decided to run their entire business from their homes. As they do remote work, they often mistakenly believe that their homeowner's insurance will also protect their business. There is a good chance that a homeowner's policy won't include protection for business property, including technology, files and professional equipment. Plus, if the home insurer isn't aware of their home business, this could nullify their homeowner's personal liability coverage.
It's important for home-based business owners to know the difference between home business insurance and home insurance. In general, home-based business insurance is commercial insurance for business owners working out of their home. Home insurance is a personal homeowner's policy that typically does not cover a business, unless special coverage is added.
Home-based businesses can vary, from a small consulting practice to serving as headquarters for a larger retail operation. Depending on the liability of the business you are operating, just like with any office-based business, you need to have appropriate coverage. In most cases you will need at least some basic coverages. First, there is general liability to protect you against claims of personal injury (libel and slander claims), damage to other people's property or premises, and accidents. Then you should consider professional liability to protect against errors and omissions.
The answer for most home based companies is to obtain Business Owner's Insurance (BOI). Home business insurance is not a type of insurance itself, but a collection of policies that home businesses need, such as general liability and commercial property insurance. Without the right coverage, your business could be responsible to pay out-of-pocket for items such as property damage, lawsuits, employees injuries and issues related to data loss.
To help determine if you need business owners insurance for your home-based company, ask yourself the following questions:
* Do customers or clients come to my home?
* Do I keep inventory or supplies in my home?
* Would I lose income if I had to close my business because of damage to my home?
* Do I have employees working in or outside my home?
* Do I maintain client or employee records on my computer?
If you are now running your business out of your home, your best move is to contact your J.P. Perry Insurance agent. They can help you evaluate your total liabilities and create a business owner's package to provide you and your company with the protection you need.