Although running a business out of your home offers convenience and savings, there are also risks involved. Unfortunately, standard homeowners insurance policies don't extend protections to commercial property, like equipment and inventory. For that reason, you may need to purchase business insurance to protect these assets. Here are three ways to achieve that feat. 

3 Policy Options for Home-Based Businesses

1. Homeowners Policy Endorsement

Many homeowners insurance providers allow policyholders to expand their coverage for business needs with an endorsement—a provision added to a policy to alter its scope. Typically, the endorsement increases limits for on-site assets in the event of theft, tornado, or other occurrences stipulated in a standard home plan. However, the additional coverage usually tops out at a few thousand dollars. It may be sufficient only for businesses with minimal in-home equipment, supplies, and product inventory. 

2. In-Home Business Policy

An in-home business policy provides broader coverage than a simple endorsement. This policy type allows you to raise coverage amounts and confers additional protections, including liability insurance. Additionally, you can recover lost income and expenses for temporary relocation as a result of approved business interruptions, like a fire. Many in-home plans also insure businesses with employees, but the number is limited—usually a maximum of three. 

3. General Business Owners Policy

Some companies don't qualify for endorsements or in-home policies because of size, profit level, or type of operation. In such circumstances, general business insurance is recommended. Known as a business owners policy (BOP), it expands coverage availability for more extensive financial protection. When personal or business-owned vehicle usage is involved, you may need to add a commercial auto insurance policy as well. 
 

If you operate a business from your home, protect your livelihood with the assistance of Steven Hall and the team at Farmers Insurance Group in Mountain Grove, MO. Businesses and residents across Texas and Wright counties turn to our trusted agency for dependable and personalized coverage options. Visit us on Facebook to learn more about our agency, or request a business insurance quote today at (417) 926-7900.