Owning your own business – especially one you can run from your home – is more than just a dream; for millions of men and women, it’s their day-to-day reality. In fact, the Small Business Administration reports home-based businesses account for more than half of all businesses in the U.S. Each day, millions of workers roll out of bed and into their offices without having to deal with a busy commute or an office full of noisy coworkers – and although they may own different types of businesses and offer different goods and services, most of them have one thing in common: They don’t have enough insurance to protect their businesses and their assets against a loss or liability claim. Why? Because most of home-based business owners mistakenly believe their homeowner’s insurance provides all the coverage they need for any business-related losses they may incur. The fact is – that’s just not true.
Why Your Homeowner’s Policy Isn’t Enough
Your homeowner’s policy is designed to cover your losses as a homeowner, not as a business owner. That means if your equipment or inventory is damaged or a client or customer becomes injured while doing business in your home, you’ll almost certainly be held responsible for all or most of the related costs. And that means if you operate a business from home, you should be looking into additional coverage to prevent financial losses that could take a huge bite out of your profits.
For most owners of home-based businesses, that means one of two possible options:
- Homeowner policy rider: A rider is an “add-on” to your existing policy that provides additional coverage for your business losses. Riders offer somewhat limited coverage, so they’re really only a good option for a select few home-based business owners who don’t meet with clients on site and who don’t have expensive business equipment.
- Business owner’s policy (BOP): A business owner’s policy provides far more coverage, including coverage for losses, liability issues and even work interruptions. For most businesses, a “BOP” is a better option because it provides a higher level of protection – and a lot more peace of mind.
How can I tell which type of coverage I need?
Having a comprehensive assessment of your business’ risk exposures is the best way to determine which type of coverage is right for you, as well as how much coverage you need to protect your business and your personal assets. Overbay Insurance Services is a leading provider of business insurance policies for home-based businesses in and around Waynesville, North Carolina. Our agents work closely with business owners to understand their needs, crafting custom solutions that suit every budget. Keep your business safe and sound. Call Overbay Insurance Services at 828-452-4699 and ask for a review of your business insurance needs today.