Home-Based Business Owners at Risk
At least 60 percent of in-home businesses are not properly insured, and 68 percent of home-based entrepreneurs between 55 and 64 years old lack adequate coverage to protect their businesses -- more than any other age group, according to an Independent Insurance Agents of America (IIAA) study.
The IIAA study also showed 44 percent of home-based business owners without proper coverage did not buy insurance because they thought they were covered under another policy, not because of policy cost.
If you run your business out of your home, you are at risk of theft, fire, or a lawsuit. It could mean more than just losing either your home or job -- you might lose everything.
Intertwining business and personal insurance needs can be confusing because your homeowners insurance policy may protect you in some areas, but not others.
According to the Western Insurance Information Services, several insurers offer cost-effective "endorsements" on homeowners plicies to provide liability protection for business activities.
For example, the typical "home day care coverage endorsement" extends the liability coverage already on your policy to protect a home-run baby-sitting program.
An "incidental business occupancy" endorsement extends your policy to cover "other structures" on premises you use for business, such as a garage. The endorsement also extends coverage for the contents of your home to protect your business property, and widens your personal liability protection to cover possible lawsuits from business visitors.
If you run a home-based business, call us at (626) 839-6061 to get the coverage you need.
We are pleased to provide this "Bulletin" as a service to you. While this information was obtained from sources believed to be reliable, its accuracy is not guaranteed. It does not change or alter insurance contracts or coverages.
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