Article by Chris Robertson

Home businesses are a thriving concern, according to the Bureau of Labor Statistics, which states that 3 of every 10 Americans run a business out of their homes. They run the gamut from salespeople to craftspeople to accountants and other business consultants. For most of them, a standard homeowner’s insurance policy is not enough to protect them from liability, loss and other damages. If you run a business from your home, you may need to consider taking out business insurance to protect yourself and your business from loss.

Types of Business Coverage

The field of insuring home businesses is a growing and changing one. As working from home becomes more and more popular, many traditional insurers are developing new types of plans and coverage suited specifically for homeowners who house their business in their homes. Check with your agent to see what types of policy may be available to you as a small home business owner. In general, though, there are three options for insuring your work-at-home business, each suited for different circumstances.

Coverage by Endorsement

If you don’t need liability coverage, you may be able to extend your homeowner’s policy to cover your business property by endorsing it. Most insurers will add an endorsement to your homeowner’s policy to cover your business equipment and some limited liability. Depending on the specific terms, you may be able to add an endorsement to your home insurance for to a year. An endorsement will usually cover you if your home office equipment is damaged or you lose inventory due to a covered event. It may also reimburse you for expenses incurred to continue doing business while your office or equipment is out of commission, such as the rental of a business computer or temporary office space or data reconstruction services. You may also be covered if a client is injured while in your home for business reasons. It typically won’t cover damages caused by your products or services – for that, you’ll need liability insurance.

In-Home Business Policy

The next step up for most home businesses is an in-home business policy, which provides more coverage for more types of incidents than an endorsement, but doesn’t include options that most home business owners don’t need. These policies usually will cover your equipment and office, including a studio or workshop where you conduct your business – but not insure the home itself, since that’s covered by your homeowner’s policy. In addition, they’ll often provide higher limits on liability coverage, including protection against lawsuits if one of your products or services causes damage to someone else. This type of business insurance is especially appropriate for home crafters or caterers, as well as for anyone who handles sensitive data or provides financial services to others as part of their business. In fact, in some cities, you can’t get a business license as a crafter without showing proof of liability coverage.

If neither of those options provides enough insurance coverage for your business, you may need a traditional small business policy that includes all of the types of coverage typically needed by any small or mid-sized business. Talk to your agent, or contact a provider of business coverage to learn more about appropriate coverage for your small home business.

About the Author

Chris Robertson is an author of Majon International, one of the world’s MOST popular internet marketing companies on the web.Learn more about Insurance.

©Insurance Bureau of Canada. All Rights Reserved. When someone makes a false or exaggerated auto insurance claim, honest consumers pay more than they should for insurance. Insurance fraud is estimated to be a multi-million-dollar business in Ontario, contributing to the high cost of auto insurance in the province. March is Fraud Prevention Month and Insurance Bureau of Canada (IBC) urges consumers to take the time to learn how to identify insurance fraud and report suspicious activity. This video shows how exaggerated claims in an actual insurance case add up.

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