Does Homeowner Insurance Cover your Home Based Business?
The answer to the above question is probably not!
We live in a time where the number of people working from their homes rises daily.
The number of employed people working at least some part of their jobs remotely from home has climbed to roughly 38 million! If you fall into this category, however, beware: your home insurance may not provide adequate protection for your business, no matter how small. Unfortunately, too many at-home earners aren’t aware of the gaps in their coverage until they’re presented with a dire situation. Examples are: inventory and business property could burn in a fire, become ruined by a water leak, or be stolen. If they are relying on their homeowner insurance to pick up the pieces, they may be surprised to find they have very little financial recourse.
So what should you look for in a home-based business insurance policy? If you operate or conduct any sort of business out of your home, be sure your insurance agency offers some, if not all, of the following coverage options to best protect your interests.
Forbes.com gives 10 good coverage options for a home-based business
1) Replacement Cost Coverage for your Home Business Property. This broadly covers business personal property and home business property or inventory– such as a burst pipe damaging a wedding photographer’s camera equipment. Replacement Cost Coverage for your Home Business Property also includes personal property owned by others in your care, custody, or control for business purposes.
2) Coverage for Other Structures on your property used for Home Business. For businesses that store their business property in a free standing garage or other structure on their property, special coverage is needed.
3) Loss of Income and Extra Expense Replacement. As an option to guard against dreaded downtime, this protection covers loss of business income that would have been earned (and related incurred expenses) during an interruption of home business, or when the premises is unfit for occupancy due to a covered loss. Loss of income and extra expense protection can help take the sting out of a terrible time.
4) Business Liability. Business liability insurance can help protect you from a variety of claims, including bodily injury or property damage to others that can arise from your business operations. This type of coverage can shelter your assets, keeping them beyond the reach of a legal action.
5) Money and Securities Coverage. This coverage protects insured monies against loss by theft, disappearance, or destruction both on and off-premise.
6) Valuable Papers and Records Coverage. This coverage is especially useful for graphic designers and other creative professionals, since it provides coverage for the cost to reproduce most printed documents in the event of an accident.
7) Property of Others Coverage. This is typically for a business that handles their clients’ personal belonging regularly. Consider opting for a policy that covers situations where personal property is temporarily in the care or custody of another person or entity. A work-from-home tailor who experiences a grease fire in the kitchen may also experience smoke damage to a client’s clothing. Property of others coverage will benefit both the business owner and the client.
8) Computer and Software Coverage. Tech jobs have seen a widespread exodus from on-site locations to home offices.
9) Professional Liability Coverage for Certain Professionals. There is coverage for when a business owner or certain professions renders a professional service and an accidental mishap occurs.
10) Excess Liability Coverage Included in Your Homeowner Policy. Lastly, consider an option that has everything you need for homeowner, business and excess liability coverage, all under one policy. In the event a catastrophic claim comes your way from any one of countless scenarios, excess liability coverage puts a limit on top of your underlying policy.
Home-based business insurance picks up where homeowner insurance leaves off. Galvin Agency can help you get the right insurance for your family, home, and business.
Things to Watch for on your Auto Insurance
Much of what happens with your auto insurance rates and premiums is at the mercy of the companies who provide the insurance, and when increases or decreases occur, they usually do so across the entire auto insurance industry. However, there are a few things to remember that you can do or pay attention to.
Maintaining good credit can have a positive impact on the cost of your car insurance. If you want to keep your rates down — keep your credit up.
Because there have been so many crashes that happen from not paying attention to the road — rates are often affected. Take care to avoid a situation due to distracted driving.
How many miles you drive your car every year:
People who use their car for business and long-distance commuting normally pay more than those who drive less.
Where you live:
Generally, due to higher rates of vandalism, theft, and crashes, urban drivers pay more for car insurance than do those in small towns or rural areas.
Did you Know?
We offer a wide variety of insurance products to include Home, Auto, Life, Annuities, Motorcycle, RV, ATV, Boat, Small Business, Rental, Umbrella, and Equine Mortality/Major Medical coverage.
Galvin Agency is here to help you with insurance questions, needs, and claims. We are here to assist you and our job is to make sure you feel protected and knowledgeable. Thank you for your business and we look forward to talking with you soon!