If you know someone who has a business that they run out of their home- either full time or part time or as a hobby- they may be surprised to learn that their homeowners and/or renters policies do not cover losses from their business activities. While some homeowner endorsements offer limited coverage, they are not designed to cover many business related losses. They may discover that they are underinsured AFTER a loss occurs. A small business owner could then be forced to go out of business because of a costly uninsured accident. A homeowner insurance carrier probably would not cover the following types of losses:
- While visiting a customer’s residence you have business equipment stolen from your vehicle.
- Inventory stored in your garage was damaged by a fire.
- Lightening hit your home, damaging your computer or fax machine.
- While doing an exhibit at a craft show you accidentally knock over the display next to you.
An In Home Business Policy is available through the personal lines insurance department and is designed for small businesses which are operated out of a person’s home. These entrepreneurs may find it difficult to obtain appropriate and affordable insurance through commercial lines. The In Home Business policy offers an affordable solution and is written for a variety of retail and service businesses. Some examples of businesses covered are:
- Clowns, Magicians, Entertainers
- Interior Decorating
- Handicrafts
- Financial Planning
- Videotaping, dubbing, editing
- Personal Fitness Trainer
Premiums typically range from $150 to $600 but can vary depending on the location and business type. The In Home Business package offers the following types of coverage:
Up to $50,000 business personal property, including theft, on and off premises
Up to $1 million in business general liability protection, on and off premises
Standard $100 deductible
Coverage for loss of business income
Optional coverages for money & securities and electronic data processing
Courtesy of Marni Jurgens, Personal Insurance Customer Service Representative
