The U.S. Bureau of Labor Statistics puts the number of home-based businesses currently operating at almost 20 million. That statistic will continue to rise as many unemployed are taking the plunge to open their own business - at home.
When deciding to start a home based business, it is doubtful that many give their insurance agent a "heads up". Think about it - this is a definite change in the "risk" associated with a typical home insurance policy. Customers may be visiting the home, the homeowner may be providing goods and services at other locations; employees may be hired. All of these circumstances increase the possibility of injury and lawsuits.
Most home insurance policies define "business" as activities that generate more than $2000 per year.
Sure, your home policy provides a bit of property coverage ($2500). But there is no liability coverage for your business. None, none, none!
If you run a business out of your home (like Mary Kay, babysitting, Tupperware, Pampered Chef), tell your insurance agent. There are some carriers that will add a "business pursuits" rider to your policy for additional premium.
Better yet, consider business insurance coverage to protect your business stuff and provide liability insurance in case you get sued in relation to your business.
Finally, running a business out of your detached garage or other outbuilding is a huge problem. Your home insurance will not cover that building for any peril - nothing, nadda, zip.
Talk to your Trusted Advisor today and Take Care of YOUR Business.
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