Operating a small business out of your home is convenient and saves you the expense of renting out a separate office space. Your homeowners insurance covers incidents related to your home, but it might not necessarily cover your business. Assess your insurance needs and follow this guide to determine what your current insurance covers as it relates to your business.

Business Coverage for Homeowners

Typically, homeowners insurance extends a limited amount of coverage to home-based businesses. For many business owners, this coverage is not sufficient, which means they will need to acquire separate business insurance. Policies can vary, but the Insurance Information Institute reports that business equipment, such as computers, printers, phones, and more, is covered up to $2,500 in many policies. For many homeowners, this coverage is insufficient because business equipment can be expensive. Keeping your business equipment insured is important because it could be damaged or destroyed in the event of a house fire or flood.

Liability Insurance

While homeowners insurance policies will provide some coverage for business equipment, standard policies do not offer liability insurance for home-based businesses. Liability insurance is essential, especially if you have clients or customers coming to your home. For example, if a visiting customer gets injured on your property, you don’t want to be on the hook for medical bills. Liability insurance provides this important coverage.

Business Insurance Options

Fortunately, you have a few options when it comes to enhancing your current insurance policy. Talk to your insurance agent about adding a rider to your current homeowner policy that can extend your business coverage. For example, you can increase the business property coverage by thousands of dollars, if needed. Alternatively, you can invest in an in-home business owner policy, which offers additional coverage specific to your business. This policy can cover more than just your business equipment. It typically includes liability insurance and covers some income loss if your business is interrupted by damage to your home. Talk to your insurance agent about the best policy for you.
 

If you are interested in home-based business insurance, contact Farmers Insurance Group, serving the Mountain Grove, Missouri area, and beyond. We offer a wide selection of insurance policies, making it simple for you to find one well suited for your family and your business. Our experienced and knowledgeable representatives take time to design an insurance plan for your needs. Contact us today at (417) 926-7900, or visit our website to get a quote.