Getting Coverage for Your Home-Based Business

So many of us are jumping ship from corporate jobs and starting up our own. Whether you're a budding entrepreneur, a freelancer, or a hard worker who has a side hustle, it's likely that these ventures stem from working at home. If so, be aware that your homeowners insurance policy may not cover several aspects of your home-based business. In order to safeguard your hard work, you may need to take out additional coverage. Without it, you leave your business exposed to damages to property, data losses, lawsuits, and unforeseen potential damages.

Does home insurance cover a home-based business?

It's a good idea to review your homeowners insurance to see exactly what it does and does not cover. If you run a business out of your home, which insurers qualify based on regular foot traffic directly from your business and inventory being stored at the property, then you may need to look outside of home insurance coverage and, instead, obtain commercial insurance.

Typically, home insurance won't cover your business's equipment or operations. That means if there's a fire in the property or a client visiting you gets injured, you will be on the hook for paying related expenses and damages.

Securing coverage for your hard work

There are a few ways to protect your business property:

• Home insurance endorsement: An endorsement can be added to your home coverage to increase coverage for business-related equipment and assets. You may also be able to pick up a liability endorsement in case someone is injured on your property.
• Business owners policy: Generally referred to as a BOP, a business owners policy provides coverage for small to mid-sized businesses. BOPs offer business owners broad coverage, including general liability protection and property insurance in a single policy.
• Separate business insurance coverage: You can select a separate insurance policy depending on the kind of coverage you want to have. For example, you might purchase business income insurance (also known as business interruption insurance). You can also purchase general liability insurance to protect your business from third-party lawsuits.

When it comes to finding the right coverage, call the experts at Jack Stone Insurance Agency. We serve Brentwood, Antioch, and neighboring cities in California with reliable and comprehensive home insurance policies.