Four Questions About Insuring A Home-Based Business


According to the U.S. Small Business Administration, “more than half of all U.S. businesses are based out of an owner’s home.” There are many benefits of home-based business including reduced overhead costs, schedule flexibility and eliminating a commute. Entrepreneurs in nearly every industry are taking advantage of the opportunity to work in the comfort of their own home. Of course, having homeowner’s insurance, many of these entrepreneurs feel that their property and the business within it is covered. It’s important to speak with your insurance provider about this. They will be able to inform you whether your business is covered under your current policy, if you need to add an additional policy or if there is a “combined” policy available that covers both home and business.

Do you need additional coverage for business property?

If you were to file a claim with your insurance company, would your maximum coverage amount cover your belongings primarily used for business? If you aren’t sure, this is certainly a question to ask your insurance provider. Things like furniture, inventory, office machines, specialized clothing, tools, paper, and shipping boxes add up much more quickly than one would assume.

Do you have a substantial amount of business records/data stored at your home?

Records/data used to mean file cabinets full of folders and countless sheets of paper documents. Today, records/data can be those old file cabinets, but it can also be computer software. Did a red flag just go up in your mind? It’s likely that your homeowner’s insurance policy doesn’t provide much coverage for this if any at all. This is an important question for your insurance provider.

Do employees or customers come to your home to conduct business?

If an employee or customer of your business comes to your home for a commercial purpose and falls on an icy sidewalk, that is NOT covered by your homeowner’s policy. Protecting your home, your business and your investments is worth talking to your insurance provider about this.

Do you need specific coverage for your home-based business?

There are many different types of insurance coverage and talking to your provider will inform you about which types are applicable and necessary for your home-based business. Some of those types are business income coverage, liability insurance, worker’s compensation coverage, business property or inventory (stored at your home), and specialized business property.

Home-based businesses are becoming the preferred choice of entrepreneurs more and more, for obvious reasons. It is our sincerest hope that they informed of their options and fully covered and protected in the event of damage, theft or total loss. If you or someone you know has filed a claim with their insurance company and does not feel confident they are receiving what they should be, give us a call. There is no cost and no-obligation. As educated and experienced Public Adjusters, we can give you an honest review of your situation and advise which actions would be in your best interest. Owning your own business can be stressful and intimidating but getting what you deserve from your insurance company shouldn’t have to be. Call us today and give yourself the confidence of having a Public Adjuster in your corner!