Home-Based Office Insurance
It is a well known fact that working from home is flexible and it saves money and time. However, it doesn’t mean that you are exempted from realities. Your computer systems and other equipments can get stolen or you may face other damages. In the US, home-based business is known to be the backbone of the economy. However, more than half of the total 43 million home-based business is uninsured. Most of the people think their home is insured. However, basic property insurance does not cover liability for business related activity.
So, it is very important to insure your home-based business. You must definitely consider it if your business has any of the following:
- Buildings and other structures (owned or leased)
- Furniture, equipment and supplies
- Inventory
- Money and securities
- Records of accounts receivable
- Machinery
- Boilers
- Data processing equipment and media (including computers)
- Valuable papers, books and documents
- Mobile property such as automobiles, trucks and construction equipment
- Satellite dishes
- Signs, fences, and other outdoor property not attached to a building
- Intangible property (good will, trademarks, etc.)
- Leased equipment
Discuss with an agent regarding various policies to get insured of your home-based business. The agent can also help you in reviewing the types of property you own and their uses. Many of these items have of course covered with the basic homeowner’s insurance policy. Remaining can be added through an endorsement or rider. Standard commercial policy doesn’t cover money and securities, so it requires a second, separate policy.
There are three main types of insurance available for home-based business owners. Business Owner’s Policy (BOP) covers the following:
- Professional and product liability (off-premises coverage and liability coverage for products you sell or parts you install).
- Personal Liability (bodily injury to customers or others visiting your home office)
- Fire and Flood Protection (general natural disaster coverage)
- Computer Hardware and Data (loss of data or software)
- Property and Equipment (theft and general business liability)
- Business income and accounts receivable
Home Office Policy (HOP) can be considered for smaller home businesses that have limited visitors. It is known to be a combination of homeowner’s and business insurance. HOP covers general business liability (professional and personal), property and equipment, and business income and accounts receivable. However, its coverage with the off-site business property is limited. There is another policy called Business Pursuits Endorsement, which has least protection.
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