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Is my in-home business covered
under my homeowners policy?
Not sufficiently. Many homeowners
policies provide only a limited amount of coverage for
business-related exposures. Depending on your policy,
your homeowners insurance may cover your business, but
probably only to a maximum of $2,500 for business equipment
in the home and $250 for equipment away from the premises.
A stolen business credit card, a power surge causing
the loss of important computer data and a lawsuit over
a business-related matter are not covered.
How can I get the most appropriate
coverage for my home business?
There are three ways. First, you may
be able to add a home business endorsement to your existing
homeowners policy. Coverage generally includes business
property coverage; business liability, including product,
personal injury and advertising liability; loss of business
income protection; valuable papers coverage; and accounts
receivable.
Second, you can purchase several individual
business insurance policies to provide the various coverages
you need, such as business property, general liability
and business income insurance.
Third, you can purchase a businessowners
package policy designed for smaller businesses, which
combines the necessary property and liability insurance
coverages you need in a single policy.
I run a day-care service in my
home. Does my homeowners liability insurance extend
to my business?
No. Care providers must purchase liability
insurance specifically for their business. You can,
at anytime, be held liable for injuries that are proven
to be the result of events that occurred while the child
was in your care. An occurrence policy will cover you
at any time in the future should you be held liable
for a child's injury. You also may get coverage for
children's injuries that do not fall under liability.
Accidental/medical insurance will cover injuries that
are not due to negligence on the part of the provider.
What other types of insurance should
I consider for my business?
If you use an automobile for your
business activities, be sure that your automobile insurance
will protect you from accidents which may occur on business-related
errands. You may need to purchase a separate business
auto insurance policy depending on your type of business
and the kind of vehicle you own.
You'll also need health insurance
to cover medical costs if you become ill or injured,
and disability insurance in case you become unable to
work because of sickness or injury. Also, you may want
to consider a small group insurance program if you have
employees.
If you hire an employee, you may need
to buy workers' compensation insurance in the event
that the employee is hurt on the job and needs medical
treatment and income. Under certain state-specific circumstances,
workers' compensation insurance also may extend coverage
to you in case you are injured at work.
Be sure that your in-home business
is properly and adequately insured. Our agency can help
you get the most appropriate coverage for your home
business.
Any other questions? We'll be glad
to help. Call 860-283-0278
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