Homeowners insurance covers the physical structure of your property and belongings while protecting you against liability claims. When it comes to business enterprises, though, it’s more complicated. If you run a business out of your home, standard home insurance policies usually fall short of offering comprehensive protection. Here’s a closer look at why you need additional coverage for your home-based commercial venture.

What Homeowners Insurance Does & Doesn’t Cover for Businesses

It’s true that many home insurance policies do protect certain types of home businesses. For instance, if you have a home office, some of the items used for work, such as computer equipment, will probably be covered by your existing policy. However, if you require valuable high-tech gear to provide services to customers, it’s likely that your coverage will fall short of fully covering these items. That means any damage that occurs will be your financial responsibility. 

There are many other protections that will be unavailable with a standard home insurance policy. For example, lost data is not covered, which can set your company back quite a bit. You also won’t have access to income protection, which is essential to remain financially stable in the event you’re unable to run your business for a period of time. 

Additional Coverage Options

If your home business goes beyond an office setup, seeking out additional insurance is a must. For example, if you have employees that work for you, you may be required to purchase workers’ compensation insurance depending on the laws in your state. If you store merchandise in your home, you’ll also need to purchase coverage in case it’s stolen or damaged. 

You can protect your business in a few different ways. A business owners policy is suited to small businesses, as it safeguards you against liability while also providing income protection in case your business is interrupted. You may be able to add an endorsement to your existing homeowners policy that will serve the same purpose. This will also expand coverage limits so you can rest assured expensive equipment is covered. 

When you have questions about homeowners insurance and your home business, they should be addressed with a local insurance agent. In Lexington, NC, High Rock Insurance Agency is happy to answer your questions to ensure you secure the right policies for your needs. Staff is available on a 24/7 basis to ensure client issues are addressed in a timely manner. They also help you find affordable insurance products by leveraging their strong working relationships with multiple carriers. Visit them online to get a quote on one of their many insurance products, including auto, boat, and life policies. Call (336) 236-9022 to schedule a consultation with an agent today.