Running a business from home is common, from consulting and bookkeeping to crafts, online stores and contracting work. What many people don't realize is that a standard homeowners policy may provide little or no coverage for business activity.
Where the gaps usually are
- Business equipment. Homeowners policies often limit coverage for business property, like computers, tools and inventory, to a small amount.
- Liability. If a client is hurt visiting your home office, or your work causes someone a loss, your homeowners liability coverage may not apply.
- Vehicles. Using your personal car for business can fall outside a personal auto policy.
- Lost income. If damage to your home stops you from working, a homeowners policy generally won't replace business income.
Ways to close them
Depending on the business, the answer might be an endorsement added to your homeowners policy, a separate in-home business policy, or a business owner's policy (BOP) that combines liability and property coverage. Some businesses also need professional liability or commercial auto.
The first step
Make a quick list of what you do, what equipment you use, whether clients come to your home and whether you drive for work. Then talk it through with Ernest, who can review your homeowners and auto policies alongside the business. Start a Business quote request or call 971-717-0800.
General information only. Coverage is subject to the terms, conditions and exclusions of the actual policy, and not every option is available from every company. Read the full disclosures.