Many influential businesses began in a garage or a home office. Working from the house provides advantages, like a flexible schedule and no commuting. Many also believe that their homeowners insurance extends to their business since it operates under their own roof. While that is partially true, some aspects of your business will need supplemental policies to ensure comprehensive coverage. 

What Will Homeowners Insurance Cover?

Under a standard plan, most individuals will have approximately $2,500 to cover damaged work equipment if they’re listed on the policy. Check the in-home perils section of the plan to determine what can be recovered. While insurers may have different limits, there’s approximately a maximum of $250 for business-related damage occurring outside the home. 

If the home business has a traditional office setup, there will be limited coverage regarding property and liability. However, it may not be enough to protect the equipment and employees. An insurance agent can guide you to a customized policy that suits your specific business. 

What Won’t Homeowners Insurance Cover?

Those with an at-home business that relies on foot traffic won’t have coverage. Homeowners insurance also won’t cover inventory, even if it’s stored on the premises. 

No homeowners insurance plan will cover employee medical expenses or the loss of business records. Should the house take damage that impedes the business from operating, the plan will not cover the lost income. 

What Additional Coverage May Be Needed? 

Add-on Riders

Insurance riders are also known as endorsements. They increase the coverage for personal property and business property that’s destroyed on- or off-premises. Liability endorsements are available to protect against claims from injured clients. 

Most policies only allow riders for at-home businesses that are making up to $5,000 a year or have a limited number of customers. If your company exceeds those limits, you’ll have to purchase a separate policy. 

In-Home Policy 

In-home policies provide a wider range of coverage than riders. They allow for property damage, liability, and lost income claims, usually up to $1 million. In most cases, at-home businesses are only eligible if they have three employees or fewer. 

Business Owner’s Policy (BOP)

Businesses with more than three employees can buy a BOP, which offers more coverage. The policy also has customizable features to fit the specific needs of your business. However, a BOP doesn’t offer health or life insurance. It also doesn’t cover disability or workers’ compensation. However, there are separate plans available, which will offer the necessary coverage. 

With the right plan, the business you’ve worked so hard to establish will be protected. For over 30 years, residents of Lorain, OH, have trusted Robert Taylor Insurance to keep their companies safe. They provide comprehensive business and homeowners insurance plans to ensure you have a policy that offers peace of mind. For more information on their coverage areas, visit their website. To schedule an appointment, call them at (440) 277-5191.