Home Based Business- are you covered?
Unsure whether your policy has coverage? Ask us!
Slightly more than half of U.S. businesses — 51.6 percent — were home-based, according to the 2007 Survey of Business Owners (SBO), conducted by the U.S. Census. Only 6.9 percent of these home-based respondent businesses had $250,000 or more in sales and receipts, while 57.1 percent brought in less than $25,000. (For further information see the U.S. Census release.)
Whether you’re doing medical billing, building birdhouses in your garage, running a day care center, auctioning art on eBay or any one of the myriad of other types of businesses people run from their homes, you may not have adequate insurance.
Many people think their homeowners policy is all they need. But a typical homeowners policy may not provide enough coverage. The usual limit is $2,500 for your business equipment while at home and $250 when it’s off the premises.
Most homeowners policies specifically exclude business liabilities. Even though your at-home business may involve only yourself working just part time, you could still have liability risk. For example, someone may come to your home for a business purpose–such as delivering materials–and sustain an injury on your premises for which they believe you are responsible. Your homeowners policy would probably not cover the damages.