Do I need commercial insurance for my home business?
Many people operate a business from home and often ask this question. My answer is yes. But there may be several ways to do this. How many hours you spend working at your business, or how much money you make does not necessarily make the difference in the need for business insurance..
Operations of a home based business create risk and exposures of several types. There is the possibility of fire, or theft to your tools of the trade. It may be a computer or literally tools to do the job. If you depend on a homeowner policy to pay, you will find business tools to be limited and if something happens to them while you are away from home, they are limited further. Generally away from home means limited to $250. And there is no premise liability or medical coverage even on premise for your business operations. This is insurance to help protect your business in negligence or “slip and falls” in which your business may become legally liable. This insurance will also provide the cost of defense, should your business become sued.
Please check with your homeowner insurance agent to see if your business is eligible for an “Incidental Business Endorsement”. This is an attachment applied to your homeowner policy and the least expensive but also difficult to qualify. A few companies may offer an In-Home Business Owners Policy and there is the Business
Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect. Always check with your chosen professional as to statements made in this blog for your particular situation.