Properly Protect Your Home Based Business

December 30, 2013

If you’re one of the estimated 30 percent of American homeowners that operates a home-based business, be aware that if you don’t have business insurance, you’re probably under-protected. Thinking that your Homeowners policy covers you could be a costly misunderstanding.

Most standard Homeowners policies can be endorsed to cover the contents of a home-based business, but often limit that coverage to $2,500 and much less coverage extends away from your home. Even worse, liability losses may not be covered at all.

Generally, there are three options to protect your home-based business:

• Endorsement to your Homeowners policy. The most cost-effective option, endorsement to your home policy is very limited and may not be adequate protection for your needs.
• In-home business insurance. Written on a policy that is specifically designed to cover home-based businesses.
• BOP (Business Owners Policy). A package of coverages designed for many different types of small businesses, whether based in the home or elsewhere.

If you have a home-based business, contact us! Central Insurance Agency has been helping individuals and businesses protect themselves since 1958. We can help you, too.