Statistics show that approximately 10% of households operate a home-based business; businesses such as desktop publishing, car repair, consulting, or tailoring.
And so we hear this question from time to time: Does my part time business need insurance?
It is not an uncommon assumption that such businesses are covered by the homeowners insurance. This is actually not the case. And the assumption often puts part-time business owners at risk for serious financial damage in cases which involve accidents, clients who believe they have been damaged due to one service or another of the business, errors and omissions, or damage to a computer, website, or loss due to bad weather.
Indeed most homeowners insurance policies will not cover business-related losses. Frequently, a business rider can be added to the homeowners policy, and in some cases, simple businesses will need nothing more than that.
But if you are doing repair work or any sort of manufacturing, you are likely to need more commercial coverage than a rider. A general liability insurance policy, and/or business property insurance.
Additionally, if you have even one employee, you will need workers comp insurance.
And going without is perilous to your pocketbook as well as your home, property, or more!
Protect your home, your business, and your security by talking to your licensed insurance professional in order to determine just what coverages you need.