Is Your Home-Based Business Covered?
While a home-based business can be a great way to bring in some extra income in these tough economic times, it can also leave the business owner with significant insurance gaps. Homeowners policies were never intended to cover business risks and you could find yourself under-insured or even un-insured in the event of a loss.
A standard homeowners policy limits coverage for business property such as computers, file cabinets, tools or supplies to $2,500 on your premises and only $250 off premise. In real life terms, that means if you take your laptop or tools to a customers home or office you only have $250 if it gets damaged or stolen.
Do your customers come to your home? A homeowners policy provides no coverage for liability exposures, so if a customer is injured on your property you would not have coverage. Likewise, you are not covered if you should cause an injury to someone in the course of conducting your business. With the average liability claim exceeding $15,000, paying those damages out of pocket would be a serious problem for most home-based business owners.
According to recent research by the Independent Insurance Agents of America, 60% of home-based businesses are not insured properly. Take a few minutes to assess the risks your home based business may have by asking yourself these questions:
- What property does the business own or use regularly and what would it cost to replace?
- Do you provide a professional service?
- Do clients come to your home?
- Could I be sued if I make a mistake or provide inaccurate information?
- Do you use your personal auto for business?
- If a fire or other disaster occur will it shutdown your business?
There are 3 basic types of policies to insure your home business exposures, which method is best for you depends on the type and size of business you are conducting. LSB Insurance can help you to assess your risks and find the policy and coverages that fit your business needs.
LSB Insurance, a Lincoln Savings Bank company. Not FDIC insured, no bank guarantee, may lose value, not a deposit, not insured by any Federal Government Agency.