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Monthly Archives: September 2015

Home Businesses Not Covered By Home Insurance Policies

From time to time we all get that urge to indulge our entrepreneurial spirit. But while some new companies start out big, renting out office or retail space, others start a little smaller. Some even start the process running out of a personal residence. But doing so can have major ramifications, particularly to your insurance policies.

When starting up a home-based business, some new owners might be under the impression that their home insurance coverage will extend to their new business. After all, if the policy covers the building then it should cover the company working inside, right?

The answer to that is a resounding “no”. Whether it is a full or part-time endeavour, it’s important to make sure that your home-based business has proper coverage.

The key will be to evaluate the size of your business. For smaller companies, an extension of your home insurance coverage can be added, while for larger organizations it is possible that standard business insurance will be needed. These policies can be used to cover necessary equipment, any potential inventory and even events that can damage your home leading to lost business income. Additionally, if employees or clients are coming to your home regularly, you need to ensure that you are covered in case of potential injury on your premises.

As soon as your home doubles as a business location it’s important to recognize the potential liabilities that you are facing. Don’t make the mistake of thinking that you are automatically covered by your basic home insurance policy. Speak to your insurance broker or company agent to find out which insurance policy is right for you.