More than 15 million businesses in the United States operate out of homes, according to the U.S. Small Business Administration. Given that there are an estimated 31 million small businesses in the country, this means that close to half of small businesses currently operate out of residential properties.
Certainly, the COVID-19 pandemic has had a big impact on how we work and conduct business. This raises an interesting question: does a home-based business need business insurance?
In this blog post, we will answer that question and take a look at both home insurance and business insurance. Let's get started.
What Is Home Insurance?
Homeowners insurance is a form of property insurance. It covers damages and losses to an individual's property, along with assets and furnishings. In addition, it also provides liability coverage against accidents that occur within the home or on the property.
Generally, homeowners insurance covers both exterior and interior damage, damage or loss of personal assets, and injuries that arise while on the property. A homeowners insurance policy has a liability limit. This determines the amount of coverage in the event of an incident.
What Is Business Insurance?
Business insurance refers to coverage intended for businesses rather than individuals. It refers to a class of insurance coverage intended for purchase by businesses seeking to cover potential damage to their property, as well as contract disputes, lawsuits, and other incidents.
There are many different types of insurance for businesses. These include professional liability insurance, property insurance, home-based business insurance, product liability insurance, business interruption insurance, and vehicle insurance.
Business Insurance for a Home-Based Business
Homeowner's policies do not cover home-based businesses in the way that commercial property insurance covers businesses. It is best to get business insurance if your business operates from a residential property. The most suitable coverage for you will depend on your specific situation.
Generally, homeowners insurance does not cover the risks you may face if:
- You maintain inventory in your home
- You have employees
- Customers and clients come to your home
- Sensitive data is stored on your home devices
It may be possible that your home-based business is under-insured. We recommend that you speak to an insurance expert, such as Tom Needham Insurance Agency. That way, you can understand how to become fully covered.
When it comes to insuring a home-based business, there are many different options. These include a homeowners policy enforcement, an in-home business policy, or a business owners policy (BOP).
Get the Home-Based Business Insurance You Need
The bottom line is that if your run a home-based business, it may be uninsured. Rather than taking a risk with your business, we recommend that you find the right type of home-based business insurance.
If you would like to learn more about home insurance, business insurance, and home-based business insurance, don't hesitate to contact the experts at Tom Needham Insurance Agency. Click here to contact us.