Oct
6

Home Based Business Could Warrant Added Coverage

There’s nothing like an economic recession to turn laid-off employees into home-based entrepreneurs. If you start a home-based business, your home owners insurance should be updated to cover this new venture. Caution: The standard homeowners insurance policy does not cover losses of business equipment, technology, income, liability exposure, medical costs and other risks faced by small business owners.

When insuring your business, there are three basic choices, depending on the nature of your business and the insurance company you use. They include:

- Homeowners Policy Endorsement

- In-Home Business Policy/Program

- Business Owners Policy

According to the New York-based Insurance Information Institute business insurance quotes, you may be able to add a simple endorsement or rider to your existing homeowners policy to double your standard coverage for business equipment such as computers. For as little as $25 you can raise the policy limits from $2,500 to $5,000. Some insurance companies will allow you to increase your coverage up to $10,000 in increments of $2,500. The “Business Owners Policy”, known in the insurance industry as a BOP, for short, is one of a number of package policies designed to meet the insurance needs of various kinds of businesses.

The key to whether a business owner is eligible for a BOP is the size of the premises, the limits of liability required, the type of commercial operation it is and the extent of its off-premises servicing and processing activities. It is very important that you be up to date regarding your home owners, and business insurance liability, especially if your looking to get small business insurance.