Working From Home? Make Sure You’re Properly Insured

16 Mar Working From Home? Make Sure You’re Properly Insured

If you’re one of the millions of Americans who run a home-based business or work from home, don’t count on your homeowners insurance to cover damaged or stolen business equipment.

Most homeowners insurance policies will cover $2,500 in damaged or stolen business equipment, after that, you’re on your own, the Insurance Information Institute reports.

“Just because a business is located in your home doesn’t mean your homeowners insurance policy will cover you,” said Michael Barry, vice president, Media Relations, for the I.I.I.

Standard homeowners insurance policies also won’t cover you if a customer or employee is injured in your home (you need business liability coverage for that) nor will it cover your business losses if you can’t work because your home office is destroyed (business interruption insurance).

You can buy a professional liability policy to protect you from lawsuits filed by clients. An errors and omission policy will help protect you when you’re negligent.

“No matter how industrious you are, one uninsured event relating specifically to your home-based business can deal a significant financial blow to the company. The key to protecting your home-based business is securing the appropriate coverage,” noted Barry.

Insurance companies differ considerably in the types of business coverages they offer. Some may meet the specific needs of your business, while others may not. When you shop for business insurance, compare coverage options as well as pricing.

Please talk to your trusted and qualified insurance agent.