With advancements in technology and the rise of the gig economy, it’s become increasingly common in recent years to run a home-based business. Unfortunately, many of these entrepreneurs are unaware of the risks they face by not having adequate protection for their operations. If you’re a small business owner who works from home, it’s important to know that you can’t rely on your homeowners insurance to cover your professional endeavors. Instead, it’s likely you’ll need business insurance just as if you had a separate office location. Here’s what you need to know to avoid being underinsured.

A Guide to Homeowners Coverage & Home-Based Businesses

Will Homeowners Insurance Protect You? 

Regardless of the industry or size of your home-based business, it’s essential to make sure you’re properly prepared in the event of a disaster. Many standard homeowners insurance polices are specifically designed to exclude coverage for business-related property and activities. Although some policies may provide up to $2,500 in protection for business equipment that’s in your home and $250 for equipment away from your home, this is rarely enough coverage. 

What It Won’t Cover & How to Fill the Gaps

Even if your homeowners insurance offers limited protection for your business equipment, it won’t cover liability claims, medical expenses, or loss of income. As such, it’s in your best interest to learn what other solutions are available to you.

At a minimum, you should consider buying liability coverage and/or seeing if your home-based business is eligible for a business owners policy. This will protect you from potential lawsuits arising out of the services you provide, injuries that occur on your premises, theft, and income loss due to an unexpected event. In some cases, you may get an in-home business policy or add an endorsement to your homeowners policy. 

To determine what kind of coverage your home-based business requires, turn to Ebert Agency. Based in Foley, AL, they’ve been entrusted to provide residents throughout southern Alabama with an array of quality products since 1928. They’ll take the time to carefully assess your situation and help explore all your business and homeowners insurance options. With their professional guidance and advice, you can be confident in the protection you choose. Call (251) 943-2281 to discuss your needs or visit them online to request a quote.