It’s a common misconception that your home insurance policy will cover your home- based business. It may not. A homeowners policy or any other type of personal insurance is just that, personal in nature. What kind of coverage do you need? That depends on the kind of business you have.
Who needs commercial insurance?
If you have a home-based business, you should have commercial insurance. Do you have any inventory, professional equipment or expensive computers? You want to get specific coverage for that.
If you sell a product or give advice, you’ll need special liability coverage. And if you have employees or customers visiting your home office, you’ll need CGL coverage,comprehensive general liability.
The good news is that commercial insurance adapts to the needs of every business. There’s even an affordable product designed for small businesses like yours, the Business Owners Policy (BOP).
What’s a BOP?
Bundled at a reduced premium, the BOP includes coverage for a company’s most pressing needs: liability in case clients are injured, property insurance for the office and its business contents, and business interruption coverage. The purpose of a BOP is to help you overcome catastrophic events and liability lawsuits so you can keep fighting the good fight.
According to the Insurance Information Institute, a quarter of small businesses never reopen after a major disaster. FEMA estimates that percentage is even higher, at 40%. Thanks to the coverage provided by your BOP, you’ll receive money to pay your current bills, cover payroll during repairs and replace lost equipment and inventory too. That will help you protect the business you’ve been working so hard to grow.
What else do you need?
Commercial insurance also has several policies and endorsements to cover the specific needs of your business, such as:
- Professional liability (Errors & Omissions): For professionals giving advice or producing work that others rely on
- Product liability insurance: If you sell products
- Commercial auto insurance: If you use your vehicle for business purposes
- Advertising injury: If your trade exposes you to libel or slander that may harm your brand’s reputation
If you need help or have questions about your home-based business and insurance, reach out to your insurance professional. They have the answers and the protection you need.