Homeowner's Insurance and Your Home Business

Filed in archive Home Based Businesses on May 2, 2008

© Laineys Repertoire

Think your homeowner's insurance is all you need to cover your home business? Think again! Homeowner's insurance won't cover any damage or loss to your home office, inventory, or equipment. For that coverage you may need several types of insurance, depending on the needs of your particular business. Here's a handy list from WellsFargo:

Business Owners Policy (BOP). This covers damage to business property-whether it is office furniture, a home-based retail store displays or a hair stylist's chair in a home beauty parlor-and general liability which includes bodily injury such as slips and falls, third party property damage, and personal injury. It covers product liability for tangible products you sell at home, or completed operations coverage of tangible products you work on. For example, the latter covers damage to your customer's home if faulty wiring in a TV set that you repaired starts a fire.

Workers' Compensation Insurance, covers employees in your home business.

Business Auto Insurance, covers automobiles, vans or trucks used for business purposes.

Umbrella Liability , provides additional protection for your business against catastrophic losses that are covered under liability policies such as the business auto policy, commercial general liability policy, and employer's liability coverage. For example, if your BOP has $1 million in coverage, but you feel your firm might be exposed to $5 million in liabilities; you would buy a $4 million umbrella policy.

For more information and for help choosing the right insurance for your home business, talk to your insurance agent, or visit the website of the insurance company of your choice.