Make Sure Your Home-Based Business Is Properly Insured

Many home business owners do not realize that they need insurance coverage.  Studies show that over half of those who own home-based businesses are not adequately insured.  Even many of those that realize they need to be insured believe they are covered under their homeowner’s insurance policy.  However, a home-based business is only covered for damages up to $2,500—which is rarely enough—and a homeowner’s policy will not cover liability issues for the home-based business.

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When it comes to insurance for a home office, the three main options that a business owner has to choose from are endorsements, in-home business policy and a business owners package policy.  Here’s a brief description of each:

  1. Endorsements – For a very nominal (under $20) yearly fee, you can increase your homeowner’s policy limits to $5,000 from $2,500 for your business equipment. However, this still won’t cover you from liability issues or lost income.
  2. In-Home Business Policy – This particular policy provides $10,000 worth of coverage for your business property, as well as general liability coverage, which can be anywhere from $300,000 to $1 million. These policies normally cost around $200 a year.
  3. Business Owners Package Policy (BOP) – The most extensive of the three plans, the BOP is great for those small to medium-sized businesses that operate out of more than one location.  It is also ideal for businesses with a large amount of inventory or complex products.

To determine which insurance coverage option you need for your home-based business, don’t hesitate to contact us at Legacy Insurance Partners.  We proudly serve Denton, Texas and the surrounding areas, and we are happy to help.  If you already have business insurance and haven’t evaluated your home-based business in over a year, contact us so that we can determine if your current insurance policy is adequate for the size and type of business you run.

 

Legacy Insurance Partners, 1205 W. Trinity Mills Rd #210, Carrollton, TX 75006

Legacy Insurance Partners

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