home-based business insurance

Home-Based Business Insurance

Many small businesses begin right in your home. Regardless if your business is just getting started or you’ve been established for a while, your home-based business should have insurance to help keep it protected. Even the comforts of home can’t stop disasters or accidents from happening. And there’s sometimes little you can do to prevent these incidents from happening.


BOP – Business Owners’ Policy

For many home-based businesses a BOP is a great option. It combines some of the most popular types of coverages, such as general liability coverage, into a convenient package. You can work with your insurance agent to help you get the right BOP to support your business. Opting for a BOP can also be a more affordable option.


General Liability

General Liability is especially important for small, home-based businesses. It helps cover you from damages to a third party. For instance, if someone trips over your belongings and files a lawsuit against you, general liability can help protect you. Accidents happen all the time, so having a layer of protection in these situations can be valuable.

Additionally, general liability can help in situations of personal injury. Personal injury can include things like claims regarding slander and libel.

General liability coverage is also there for instances of property damage outside of your home. This could include damage that you’ve caused to someone else’s property, or to a rented space. If you hold meeting or events in property outside of your home, general liability is a useful thing to have.


Professional Liability Insurance

Professional liability insurance is another important coverage for a home-based business. This coverage is also known as errors and omissions coverage. Some of the most common things that that home-based businesses face are professional mistakes, a failure to deliver the promised service, and negligence. If you face a lawsuit concerning these things, your professional liability insurance can help. The coverage can help with lawyers’ fees, and other legal fees regarding the lawsuit.


According to the national center for state courts, the average errors and omissions lawsuit can cost $140,584, a number reported by the National Center for State Courts. Having E&O coverage can help you financially if you end up facing a lawsuit.


Homeowners Insurance Won’t Be Enough

If you are running your business out of your home, and you have homeowners insurance, that is often not enough to properly protect your business. While some home insurance may cover limited amounts of business activity in your home, some may not at all. Be sure to check in with your insurance agent to see what is (or is not) covered in your existing homeowners’ insurance. Often, homeowners insurance will not protect your business equipment if it gets damaged. Alternatively, your home insurance coverage limits may not be high enough to cover all your business belongings.


If you decide to start your business in your home, or you already have a home-based business, inform your insurance agent. They can help find you the coverage that you need to help protect your small business. Even if you are just starting out, it doesn’t hurt to be prepared!


Talk to an Encharter agent about your home-based business today at 888.754.8299!



Additional Sources:

National Center For State Courts: https://cdm16501.contentdm.oclc.org/digital/collection/civil/id/24



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