Home Business Insurance

Many homeowners operate a business or work out of their homes. Most of them are under the impression that their home insurance will cover everything in their house, including their business. Even though the home insurance policy covers damage within and off premises to a certain extent, the policy will not cover all the needs of a home based business. Only a complete home business insurance policy can give complete assurance to those who work from home.

Home based businesses differ on many fronts. The needs of those who sell products differ from those who offer services from home. Hence, providers offer different types of home business insurance policies. Some have a predetermined package, some offer a customized package and some offer both the options.

Basic Home Business Insurance Coverage

A home business needs some basic coverage elements including public liability, professional indemnity, building, contents, fire, burglary, general property off home, business money, business vehicles, relocation and personal injury or illness. As additional coverage options, you can add glass breakage, tax audit, business interruption, errors and omissions, malpractice, completed operations, employee theft and dishonesty or fraud, equipment/machinery breakdown, electronic equipment and more.

Professional Indemnity

If the business involves offering advice to customers, then professional indemnity coverage is important for a home business. If your work or the information you provided is faulty, the clients can hold you responsible for the loss (financial or otherwise) they suffer. Professional indemnity coverage protects you against these litigations.

Public Liability

If your work involves coming in contact with the public, you need coverage against any injury or damage your work might cause the public. Such liabilities (including medical and legal) are very expensive, so public liability coverage is very important.

Business Buildings

Your workplace (your home) will be covered against any damage due to covered risks including fire, storm, floods, theft, etc. Even though this coverage protects your business building (home), it does not cover the personal contents in your home.

Tips to Buy Home Business Insurance

  • Sort out the insurance needs specific to your line of business.
  • Go with providers who offer everything you need in a customized home business insurance package.
  • Try your options with a business or professional organization to get the benefits of group rates.
  • Check if your current insurance provider (home, car, health, etc.) offers home business insurance. Having all your policies under one roof has many benefits.
  • Research, compare and take an informed decision.

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