Are You a 'Homepreneur'? Protect Your Home-based Business

Home-based businesses need insurance, too.

You made it! You turned your passion into a successful home-based business. Maybe your eye for taking great photos has become a full-time wedding photography business. Or perhaps you retired from corporate bookkeeping and started tutoring local children in math. Congratulations!

Now, are you willing to bet your house on it?

That’s what you might be doing if you aren’t properly insured. Standard homeowner policies generally don’t cover business-related losses. According to the U.S. Small Business Administration, more than half of all U.S. businesses are based out of an owner’s home.

If you’re one of these business owners, a review of your situation may reveal that you need coverage for:

• business supplies, inventory and equipment if a fire destroys your home
• liability claims if a delivery employee trips and falls on the sidewalk while delivering a business package to your home
• product liability if your product causes injury to a consumer
• the cost to recover a stolen company laptop and lost business records

Insuring a Home-based Business

Your independent insurance agent can help you find the right coverage for small retail and service businesses operated from your residence, for example, bookkeepers, crafts makers, music teachers, secretarial services, tutors, home distributors, hairstylists and photographers. If your receipts are modest and you have a few or no employees, a residential business package may be right for you. But if your business activities exceed the requirements for a residential package, a small business policy may be a better fit.

If your primary business operates at your clients’ site, such as mowing, landscaping and snow removal, you probably won’t qualify for a home business package. You’ll also probably need more specialized insurance if you are a home childcare provider or cosmetics distributor. Your agent will know how to help you.

Don’t risk your home or the business you built. Make sure you have the protection you need.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.