The short answer is yes.  Many people believe that a standard Homeowners Policy will cover a home-based business.  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, Beauty Counter (these examples can be used for many different goods and services you can sell, not just beauty supplies), and some situations that could arise.

 

Not Covered by Homeowners, Covered by Business Owners: 

• There is a fire and your Beauty Counter 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 Beauty Counter products
• Someone from one of your Beauty Counter parties has a little too much to drink and gets in an accident on the way home
• A hacker steals all of your Beauty Counter 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.