Four Coverage Options If You Work Out of Your Home

Being your own boss is part of the American Dream. Working from home makes it even better. But the dream has some downsides. What would happen to your business if you were injured or hospitalized? What if a delivery guy trips bringing you your office supplies? What if your dog bites your client? Or you’re on the losing end of a liability suit? You know Murphy’s Law, which is why you also need to know what kinds of insurance your home-based business needs.

• Endorsements to your homeowners policy. Your standard policy has fairly low limits for personal injury liability, and it may not cover claims at all if they’re work-related. It also may not cover loss of inventory or business equipment and furnishings. Ask your carrier about endorsements that can up the limits on your business equipment and on-premises injury liability.

• If the higher limits on homeowners endorsement aren’t high enough, look into in-home business policies and endorsements. These provide more comprehensive coverage and may also reimburse the loss of income, loss of records and even the expense of moving to a temporary location.

• If your home office is damaged or destroyed, extra expense insurance can reimburse the costs you incur above your normal operating expenses while your home office is repaired. 

• Need more coverage than the options above provide? Look into a Business Owners Policy. Also called a BOP, it’s package coverage especially for small-to-mid-sized businesses like yours. It typically includes property, liability and business interruption coverage, usually for less than buying those coverages separately.

Want to learn more about all the insurance coverage options for small business? Shop and compare small business insurance policies here.