Skip to content

There’s No Business Like Home Business…If You Are Covered

There’s No Business Like Home Business…If You Are Covered

There are many benefits to operating a home-based business. The first, of course, is the instant commute. Many who have a home-based business conduct much of their morning office duties from their jammies. There is also the ability to better set your own schedule and be able to react to family duties. Many who operate home-based businesses are their own bosses, which has its perks. Perhaps the biggest reason home-based businesses are so popular, however, is they can be operated with very low overhead.

There is no rent for office space, for example, and utilities are included. In fact, operating a business from a home can have tax advantages that make it even more appealing. If you think, however, that your home-based business will be covered under your homeowners’ insurance policy, you are taking a big risk. The problem is magnified by the fact that you may not know it is a problem until it is too late.

Let’s take a look at the premise for your homeowner’s insurance. It is designed to cover your home from losses due to liability claims and certain calamities. The keyword here is “home”. Once you begin to use a house for more than personal living space (like renting out space or conducting business activities) its use changes. Those activities would not be covered under your homeowners’ insurance policy. From an insurance company perspective, your home now becomes a place where commercial activity is taking place. 

This is particularly risky if you have inventory, office equipment or have clients visit your home to conduct business. These items would likely not be covered under your basic homeowners’ insurance policy and you will have increased exposure to liability claims.

It can be relatively simple and inexpensive to protect your home-based business, however. Contact your independent agent and make them aware you have a home-based business and what is involved in the business. They can provide an addendum or rider to your policy that will ensure coverage for your business activities conducted at home.

Yes, there are a variety of reasons operating a home-based business makes sense, as long as you have it properly covered in the event of a loss. Contact us and we can help explain your options and prevent you from experiencing an unexpected and uncovered loss.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Why Life Insurance for a Child (or Grandchild) Is a Good Idea

Why is the purchase of a life insurance policy on a child a good decision? There are multiple reasons, including helping to ensure their financial future. Learn more in our blog.

Is Your Home Ready for Winter?

There are some simple yet important ways you can make sure your home is ready for the winter weather ahead. Here’s a list of some home maintenance tasks you should consider.

Calamities Basic Homeowners’ Insurance May Not Cover

Would your home be covered if it was hit by a meteorite? What about an earthquake, sinkhole, flood or wildfire? We take a look at calamities that your homeowners insurance may and may not cover.

Homeowners’ Insurance: Actual Cash Value vs Replacement Value

Knowing the difference between replacement value and cash value and keeping an accurate home inventory are critical in a homeowners insurance claim.

A Home Improvement That Can Help Pay for Itself

Investing in home improvements can pay long term dividends. Some upgrades can even begin to pay you back immediately. Here is a look at some safety and security upgrades you may want to sonsider.

Do I Need a “Human” Insurance Agent?

Do you need a real-life, human insurance agent? Perhaps not, but should you want a real-life, human insurance agent? Probably. Here is a look at why more human is more better.

Pet Peeves: Dogs and Liability Insurance

Are you covered from a liability claim should your dog bite a friend, neighbor, relative or stranger? Most renters’ and homeowners’ policies offer some protection, but is it enough? Find out more.

Why Does My Credit Affect My Car Insurance Rates?

There are many factors that impact car insurance rates. Driving record, number of miles traveled, age, where you live and yes, your credit score. Learn why your credit rating can affect your car insurance rates.

There’s No Business Like Home Business…If You Are Covered

There are many benefits to operating a home-based business, but there may also be risks you are not aware of. Make sure your home business is properly insured.

6 Reasons to Choose an Independent Insurance Agency

Once you understand the difference between a “captive” insurance agency and an independent one, you begin to understand the value of independence.

Leave a Comment





Translate »