Insurance Insights: Is Your Home Business Covered?
The current state of affairs in the job market has led many people to kindle their entrepreneurial spirit and start up their own businesses at home. Those taking this commendable level of initiative should be sure that they have the right kind of insurance. According to the Independent Insurance Agents & Brokers of America, nearly 40 percent of those surveyed are uninsured primarily because they thought their homeowners policies covered their businesses. The fact is, however, that a typical homeowners policy usually covers damages only up to $2,500 on the premises of the home-based business and $250 off the premises. With this in mind, those with home-based businesses should look into getting the coverage they need.
Insurance facilitates the spreading of risk from the insured to the insurer. The basic principle of insurance is to spread risk among a large number of people. Whenever a loss occurs, it is compensated out of funds of the insurer. Whether it’s personal, business, or life and health insurance, our office designs and develops total insurance programs. We also feature insurance for woodworkers, entertainment businesses, and schools.
Quick Tip: A homeowners policy typically will not cover liability arising from a home business.