In this day and age, everyone is always looking to make a few extra bucks! What is the easiest way to do this and not take time away from our family obligations- starting and operating a business right out of our homes!
It seems like a great idea. Your home is already insured, therefore it won’t cost you any money to rent a place nor will you have to purchase any additional insurance.
Well, that is not always the case. Depending on the business you operate, your Homeowner’s policy will exclude any claims arising out of any work-related operations. The Homeowner’s Insurance policy will also exclude most business personal property, with a few exceptions that you can purchase back for certain carrier approved businesses.
The most common business operations that I run into are “In Home Day Care” exposures. These types of businesses are typically excluded from your Homeowner’s Insurance policies.
I feel it is important to obtain a commercial policy to cover this exposure. The Commercial Insurance policy will provide the following coverages:
- Abuse and Molestation Coverage (in case you or an employee are accused- the attorney fees can get costly)
- General Liability (in case something happens to a child- slip and fall)
- Business Personal Property (in case a fire or theft – you can replace the toys, chairs, tables, etc.)
- Business Income (In case there is a fire and now you have to relocate or need some income until you can get up and running again)
- Worker’s Compensation (in case you are hurt or you have any employees that may get hurt)
- Data Compromise/Cyber Liability (in case your computer is hacked and they still personal data)
These are just some of the benefits to purchasing a Commercial Insurance policy. There are many more inclusions that you would have coverage for that your Homeowner’s policy will just not cover.
If you are thinking about starting, or if you are already operating an in home business then I would welcome the opportunity to sit with you and discuss some options that will work best for you and your business.