06.25.07
Insurance for the Home Office
The other day while meeting with a new client the topic of insurance came up. She runs a telemarketing business out of her home and was curious as to what type of coverage, if any, she should be carrying. She had a basic homeowner’s policy and believed that covered her. She was surprised to learn that her homeowner’s policy, as it currently was written, did not adequately cover her.
Many homeowner’s insurance policies will only cover up to $2,500 for home office equipment and inventory in your home, and $250 for home office equipment and inventory away from home. Furthermore, there is absolutely no liability coverage offered for your home office. So, if someone is injured while doing business with you, in your home, you may end up having to pay that bill out of pocket. The good news is that you can easily add additional coverage to ensure that all office your office equipment, furniture, and ultimately your business is adequately covered.
Most policies will allow an additional endorsement called a permitted incidental occupancies endorsement which will give you broader property coverage for your business and add much needed liability coverage. Additionally, a separate work at home business owners insurance policy can be purchased to supplement your homeowner’s insurance or if you currently do not carry a homeowner’s policy. Ask your insurance agent about which options work best for you.
