Home Business Insurance: Do I Need It?

January 16, 2012

The number of Americans who own and operate a full or part-time business in their home is growing. Yet many of these creative, go-getters are neglecting an essential component of running a successful business—business insurance or, more appropriately, home business insurance.

Some owners of home businesses believe their homeowners policies will cover all their home business insurance needs and, therefore, many of these entrepreneurs are uninsured. However, a home insurance policy will not cover everything related to a home business.

Here are some additional areas of home business insurance coverage you may want to consider if you own and operate a business in your residence.

Property and Liability Insurance

Home business owners need both property insurance—in case they’re robbed or a fire breaks out in their office space—and liability insurance—in case someone gets hurt on their business premises or while using their product or service.

Do not assume your home insurance policy will cover these events. Check with your independent insurance agent for more information.

In most cases, a homeowners insurance policy will not cover business-related liability. So, if a customer falls down the stairs at your business headquarters (i.e. your home), you will probably be required to pay for expenses relating to this accident out-of-pocket.

Auto Insurance

If you operate a vehicle for business-related activities—like delivering products or visiting customers—make sure your current auto insurance policy (assuming you have one) will protect you from accidents which may occur while on business.

In some cases, a personal auto insurance policy will cover business use, but you won’t know for sure unless you ask your insurance agent. He or she can tell you whether or not your current policy will cover your business auto needs.

Workers’ Compensation Insurance

Have you hired an employee? If so, you may need to purchase workers’ compensation insurance to cover the cost of medical treatment and lost income if an employee is hurt on the job.

Ask your local insurance agent for more information about the laws regulating workers’ compensation insurance in Ohio or Kentucky.

Find an Agent Near You

The best, most reliable way to determine whether or not your homeowners insurance policy will cover your home business is to contact your independent insurance agent. An independent agent can help you explore your options, and, if you do need to purchase additional insurance for your home business, they can help you find a policy that covers what you need and that fits your budget.

Based in Cincinnati, OH and Covington, KY, Burkhart Insurance Agency is ready to help you with your home business insurance needs. Contact us today to learn more.

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