According to the U.S. Small Business Administration, more than half of all businesses in America are based out of a person’s home. In 2004, it was found that an estimated 60 percent of these businesses do not have any insurance coverage. Some business owners may forgo commercial insurance because they mistakenly believe they are already covered under a homeowners or renters insurance policy. These policies may provide some coverage for equipment used in a home-based business, but typically do not offer comprehensive coverage for a business operating in the home.
Listed below are some factors to consider when deciding whether or not you need additional coverage for your home business.
Is Your Business Equipment Covered?
Determine if your current homeowners or renters policy covers the cost of the equipment you specifically use for your business. Many policies do not and may actually consider operating a small business in your home a violation of their terms.
Are Your Clients Protected?
If your business clients regularly visit your home, consider obtaining liability and property insurance in Vista to protect yourself and your agency in the event of an accident. Homeowners policies do not typically cover injury claims from third parties if the reason for their visit was business related.
Do You Need Coverage for Your Agency’s Data?
If you store business data at home, you may want to consider obtaining additional coverage to protect your agency in the event of a data breach. If you skip the additional coverage, your business may be vulnerable to potential lawsuits and lost income.
If you do decide to obtain additional insurance coverage, the two most common types are business owners policies and add-ons to your current Vista homeowners insurance policy.
Getting an Add-On to Your Current Policy
Add-ons to existing homeowners or commercial insurance policies are usually low-cost options that provide extended coverage for business equipment or liability in the event a client is injured in your home.
Obtaining a Business Owners Policy
A business owners policy is more comprehensive and protects against more serious situations such as data breaches, malpractice suits, or unexpected interruptions of business operations.
Understanding the types of insurance and add-ons you need for a home-based business can be difficult without assistance from trusted professionals. Get in touch with American Tri-Star and we can help you navigate this process and find the insurance you need. In addition to home and commercial insurance, we also offer affordable health, RV, motorcycle, and car insurance in Vista. Give us a call today at 760-758-1600 to speak with one of our knowledgeable agents.