The short answer is yes. Many people believe that a standard Homeowners Policy will cover a business out of the home. This is an incorrect assumption. Here is why it is important for you to have a Business Policy. Let’s look at a popular home-based business, LuLaRoe, and some situations that could arise.
Not Covered by Homeowners, Covered by Business Owners:
- There is a fire and your LuLaRoe inventory is ruined
- From that fire you not only lost your inventory, but your business income has been interrupted
- Someone slips, falls and is injured at one of your parties at your house
- The UPS delivery person slips on your property and is injured while delivering a box of LuLaRoe leggings
- Someone from one of your LuLaRoe parties has a little too much to drink and gets in an accident on the way home
- A hacker steals all of your LuLaRoe client information, including credit card numbers
Now that you want to protect yourself from these types of situations, you will need to set up a Business Policy.
Most popular options for coverage:
- A Rider to your Homeowners Policy will provide limited coverage, but is a low cost option (this is better than nothing!).
- A Business Owners Policy (BOP) will have more comprehensive coverage to protect against the losses above and many others.
According to the Independent Insurance Agents & Brokers of America, 61% of at-home businesses do not have adequate coverage. Do not be one of those people. Call us today to find out more information about protecting your home-based business! www.mancuso-nowak.com.