insurance

Does your insurance agency have you covered?

If you think your insurance agency has your home business covered through your homeowners insurance policy, you may be wrong.

The average home policy doesn't cover any home business-related claims. So, if your home office computer gets zapped by lightning and you lose all your sales records, or a delivery person slips and falls while carrying a business package on your property, you could be liable for any losses. Even if you run a part-time business or a hobby, you may not be covered for losses from these activities.

Here are three insurance options to cover your home business against theft or damage to your inventory and equipment, as well as liability coverage.

Endorsements

This is a rider added onto your existing homeowners policy to cover specific risks. These riders are typically inexpensive. Some insurance companies will have even greater coverage for a higher premium.

In-home business policy

These policies typically allow coverage of property and also offer general liability. They cover lost income and any expenses up to one year in the event something happens to your house, such as a fire or flood.

Business owners policy

If you operate a business from home as well as other locations, you may want to look at the business owners policy, or BOP, package that covers business liability, errors and omissions, and any off-premises product liability. Like the in-home business policy, it also covers loss of income and pays for your expenses (including payroll) for up to one year. Note that it does not include workers' compensation insurance.

If you'd like even more coverage, consider commercial insurance. Contact your insurance agency to find out what would be the best policy for you.

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