If you work out of your home, you may assume that your homeowner’s insurance will cover you for business-related losses. Unfortunately, most policies will require additional riders to cover business losses, and even then probably will not cover you fully. To be sure you have a policy that will cover losses due to general or professional liability, you’ll need a Home Office insurance package to guarantee that you aren’t under-insured.
What is a home-based business insurance (Home Office Insurance) policy?
It’s an insurance package tailored to provide maximum coverage for liability suits relating to personal and professional injuries at a home-based business. You may be able to add this sort of coverage to your homeowner’s policy for as little as an additional $12 a month, but the coverage will be limited. You’d be better off with a full home-based insurance policy. Such a policy costs more, but it will cover you for the full damages that result when, say, a delivery person is injured bringing a package to your house or a visitor slips on your sidewalk. It will also protect you against the professional liability resulting from a defective product or faulty information.
If you work in a structure used exclusively for business, such as an outbuilding behind your house, home-based business insurance will cover the cost of repairing damage resulting from fire, flood, or other natural disaster, something that homeowner’s policies frequently omit from their coverage.
A full-blown small business insurance policy covers you against these things and more, but it may provide more coverage than a typical home-based business needs. The role of home-based business insurance is to provide coverage at a reasonable cost that exceeds the coverage provided by a homeowner’s policy while not exceeding your ability to pay the premiums. Talk with various insurance companies to see exactly what their home-based business policies cover to determine whether this is the insurance you need or if a more expensive (but more comprehensive) business home office insurance policy is from a Canadian Liability Insurance company like Liabilitycover is called for. At the very least, be sure that you have home office equipment to cover all of the business assets that you have in your home.
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