Business insurance quotes

Home Based Business Insurance

Home based businesses and business owners are perhaps the most under-insured demographic. Since many home based business owners do not bring customers or clients to their home, many believe they don't need insurance. This isn't always true. Others believe that their homeowners insurance naturally covers any business property stored within the confines of the home. This isn't always true, either.

It is important to understand fully what protection you need for your growing home based business. This can include anything from natural disasters (inexpensive to insure against) to payroll and workers compensation for on-site injuries (expensive.) Knowing exactly what you most need to insure will help your insurance agent build a policy that works.

Endorsements
Endorsements allow you to up your already existing homeowners policy to a level that will protect your business interest by adding a simple rider to the contract. Typically, such an endorsement will cost less than $100 per year for a policy up to $10,000 against property owned by your business.

Endorsements are some of the cheapest, and thus the most thin, forms of home based business insurance. They will not cover damages caused by your business or operations, loss of income, or coverage typically reserved for more expensive commercial coverage. They are, however, a very popular form of home based business insurance for any company that does not deliver products from home, or arrange any presentations or meetings with clients in the home. (Most vending routes are often covered with one endorsement rider to a homeowners insurance policy.) If you do expect commercial traffic through your home, you will probably require more than just a simple endorsement to cover your risks.

Home office and in-home business insurance

Home office insurance is built around a policy more inclusive than an endorsement. Generally, home office insurance is made up of two contracts, a business insurance contract and a home insurance policy and contract that are combined to offer both protection of the home and business assets and functions. Unlike a rider, the in-home policy covers lost income and potential expenses should you lose your home to natural disaster. Also, the in-home policy covers important business functions and assets like accounts receivable, equipment, and your databases and records against loss.

This type of policy is best for medium sized businesses of up to five employees that is operated from the home. It is absolutely not suitable for a business with its own off-site offices.

Work with Your Current Insurance Company

While most insurance companies now require that their customers buy both home insurance and business insurance at the same time, not all do. Unfortunately, working with two different insurance companies and two different contracts can result in dangerous gaps in coverage, and rarely are such gaps noticed until it is already too late.

Consider this: you have a home policy with Company A and a home business policy with Company B. Your home catches on fire but is insured against fire from Company A. Your policy with Company B, however, does not cover fire. Due to the gap in coverage, your home and your personal belongings are insured, however your business assets are unrecoverable. Depending on the severity, you may have lost a home, a business, and an income in just one catastrophic event.

Another reason to keep the policies together is to cut your costs. Insurance companies are very often willing to offer a flat rate discount when current customers add to their policies either with a full contract or a simple rider. Also, while you're on the topic of insurance, consider moving over cars or other insurables to save even more.

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