Do Home Business Owners Need a Separate Insurance Policy for the Company
According to a 2012 report, over two-thirds of US businesses begin at home. As any entrepreneur will say, running a home-based business comes with benefits as well as risks. If someone runs a home business or has thought of starting one, they shouldn’t assume that their home insurance Lakeland offers enough coverage. Read on to learn which types of coverage a home business owner needs.
Insurance for Business Owners
Various insurance policies can be crucial in protecting a company from liability claims, vandalism, theft, fraud, and employee injuries. Options include:
Property coverage
Liability coverage
Worker’s comp insurance
Commercial auto insurance
Crime insurance
Talk to a local agent about options for Commercial insurance Lakeland.
Home Businesses and Liability Coverage
Small businesses make great targets for litigation, and a single lawsuit can lead to financial ruin for a home business owner. While it’s impossible to keep disgruntled clients and unhappy employees from filing lawsuits, business owners can use liability insurance to protect their interests.
Most home and personal insurance Lakeland doesn’t cover things that happen during the course of business. Without a separate liability policy, damages may come out of the business owner’s pocket.
Property Coverage
Along with liability coverage, business insurance covers the company’s property and equipment. Most home business owners haven’t thought of buying a separate business policy. After all, if homeowners insurance Lakeland covers the home, it should cover the business, shouldn’t it?
That’s a mistaken assumption. Coverage for anything related to the business is specifically excluded from most homeowners’ policies, or it’s covered for a low limit. Business property insurance can provide owners with the help they need to replace lost property and income.
Ask an Agent About More Coverage
When a client wonders whether a home-based business can get more coverage through a homeowners’ policy, they should talk to an agent who will likely ask these questions, among others.
Where is business conducted, and what’s the building’s main use?
Does the client own and operate the business?
Does the company have any employees?
Are home care services involved?
Is any business signage displayed outside the home?
Do customers and clients visit on a regular basis?
Are any flammable or hazardous materials used in day-to-day operations?
For additional information on whether a home business can be covered under a homeowners’ policy or through commercial insurance, or to find out more about commercial coverage options, contact an insurance agent in Lakeland today.
