Get the Best Home Business Insurance for Your Home Enterprise

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 15, 2021

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If you have a home business or are telecommuting to work, home business insurance is important because your normal homeowners insurance policy may not cover you for work related items. Adding business insurance coverage to your plan is the best way to make sure your home operation will be covered in the event of a loss.

What Home Business Insurance Covers

Your home business insurance policy will cover the tools of your trade: computers, printers, data storage devices, and your inventory are all protected. Additionally, most home insurance for businesses offer some liability coverage in the event a client visits your home for business purposes and is injured. All of this coverage is critical if you operate a home business and your home insurance policy will not cover you.

TIP: Some insurance companies will ask if you run a home business. This is because some insurance companies will not issue you a policy if any business related activities are conducted on your home premises. Make sure you answer this question truthfully to prevent future claims from being denied.

As you review your home business insurance options, you should shop for a policy as you normally would: obtain and compare home insurance quotes in order to find the best deal for your business. Just like any home insurance policy, your home business insurance will have limits on the amount you can collect in the event of a loss. Know what your home business policy covers, know how much insurance you need for your home business, and get a policy that adequately covers your operation.

Home Business Insurance Rider

Most homeowners insurance companies now understand the need of their policyholders to extend insurance coverage to home business. Therefore, some insurers have actually started to tailor policies to include home business insurance coverage by attaching a home insurance rider to the plan. Ask your agent or insurance company if they offer riders that will add home business insurance coverage. There are several specific home business insurance riders that you should also consider:

  • Computer Equipment- Increase your policy limits for computers used for the home business.
  • Business Liability Extension-Increase your limits for business liability and medical expenses.
  • Business Personal Property Extension- Some insurance companies limit coverage for business personal property. This kind of endorsement would increase the limits to give you more coverage for all of the property associated with your business.
  • Business Electronic Data Rider- This rider would extend coverage to all electronic data- CD’s, DVD’s, recovery costs of electronic data lost or damaged.

TIP: If you operate a home-based business, make sure you understand your home insurance limits for business insurance coverage. This could make the difference in your claim being paid or denied.

Home Daycare Liability Insurance

It is very important to let your insurance company know upfront if you have a home daycare business. This is to make sure you have a home daycare liability insurance coverage rider added to your policy. If you have been with your home insurance company for a while and have recently started a home daycare business, call your agent and inquire about coverage. Some insurance companies will cancel your home insurance policy if they find that you operate a home daycare. Due to the large liability risk home daycares can incur, you must make sure you have coverage for this risk!

A home daycare liability insurance rider will extend liability and medical expense coverage to cover claims relating to home daycare businesses. Home daycare liability insurance is extremely important! Children get hurt. Parents will be coming to your home to pick up children and could slip and fall. Playground accidents are common. Nothing would be worse than to have a child hurt and then find out you have no coverage.

To ensure that you have enough coverage, getting a separate home daycare liability insurance policy that has at least one million dollars in liability coverage may be your best option. It will also give you business interruption insurance in case a severe storm or other type of loss closes your business for an extended period.

Home business insurance is important, especially if you operate a full time business out of your home. If you need a quote for home business insurance coverage, click here and get a free quote from Free Advice today.

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