Business Insurance for Home Business

Submitted by Insurance Maze on Fri, 05/23/2008 - 13:42

As more and more people are starting a business venture from their homes, homeowner's insurance policies are getting a little more confusing.

Many home insurance policies provide endorsements for "incidental business" coverage, but most people don't realize that there is absolutely no business liability insurance coverage offered in the home policy.

Just as we separate our business from our home for income tax purposes, shouldn't we also separate our business from our home for "insurance"
purposes?

Maze

Posted: 23 May 2008 02:44 Post Subject:

I absolutely agree with your assessment. The home and business even though on the same property should be seperated. Especially with the increase in size of some of the supposed home businesses. When meeting with customers we should draw on the advantages of having a busines policy instead of homeowners. This is going to unfortunately only increase with the rising price of gas.

Posted: 27 May 2008 09:21 Post Subject: yes

yes I agree to you both on this. that would be really a good thing to consider

Posted: 09 Jun 2008 11:19 Post Subject:

I think that many people also choose not to understand that their home owners policy does not cover business use.

In Canada there are home based business riders available on many policies and the premium is much lower than a commercial policy. Generally they are available if it truly is a small business. For example - under $200,000 revenue and only 1 employee other than the owner.

Is this the same in the USA?

Posted: 10 Jun 2008 06:08 Post Subject:

Hi, even in the US you'd need to have extra property coverage even if you are running a home-based business.

I've seen that the home owners policies in the US would either cover you for little or won't cover business at all. Yes, some people do use riders apart from the home insurance in order to cover small home-based business. This would come in handy to protect you from losses arising out of your business.

I think while applying for a rider you'd need to re-assess your business assets. you'll need to make a careful notification of the current market worth of all your business assets as well as their serial nos. That is the reason I feel its much better to get everything mentioned at your bu. records since the commencement of your bus.

Regards,
Plasmahectic

Posted: 19 Jun 2008 03:28 Post Subject:

I agree with slappy. The home and business even though on the same property should be seperated.

Posted: 05 Jul 2008 01:13 Post Subject: Business Insurance for Home Based Business

Moreover, Travelers small business underwriting would decline many applications when a business physical address is a residence.
However, personal lines insurance carriers we work with have provision C available to cover some general liability (sleep and fall) for home based business and they charge for it very little.

Posted: 05 Jul 2008 08:30 Post Subject:

State Farm covers the small and home based entrepreneurs under the Business in the Home Program at a competitive price. It offers coverages for loss of income and loss of records along with the basic liability and property coverages.

Further, it gives you the option to customize the product to meet your needs.

Posted: 05 Jul 2008 09:06 Post Subject:

I agree with slappy. The home and business even though on the same property should be seperated.



That is because the property engaged in the business activities may have different coverage requirement, as it's exposed to different kind of perils. Remember, an investment is attached to it and hence, you're required to take special care in insuring it.

Homeowners insurance falls short of addressing all the special needs of the home based business. the HO policy will not cover you for the loss of income, machinery and inventories. Also, the homeowner insurer may deny a claim if the residential part suffers damages from the home based business unit. The home based business insurance is a specially designed policy that covers the perils that the operation may suffer.

Some states have mandated business insurances for the entrepreneurs operating form home. You're required to have the policy in order to obtain the operation license in these states.

Posted: 22 Jul 2008 06:37 Post Subject:

MY friend has just gone to India from US and he wants to know the policies regarding home business insurances in India...
Can anyone of you here help him..

Posted: 14 Aug 2008 03:06 Post Subject:

Interesting discussion. This is making me think.

I operate my business out of my home and I haven't looked into coverage specifically for my business.

I have learned something today.

Posted: 16 Aug 2008 07:38 Post Subject:

please reply to my question

MY friend has just gone to India from US and he wants to know the policies regarding home business insurances in India...
Can anyone of you here help him..

Posted: 24 Sep 2008 03:44 Post Subject:

Ditto with slippy. Allstate offers various "Home Business" coverages with the HO policy that will protect computers, records, etc. These coverages are very inexpensive.

I would definitely recommend them to anyone who operates a home business.

Posted: 07 Oct 2008 07:22 Post Subject: hi, both business and home are different

you can take seperate insurance for both, as there is no boundation to take more than one insurance. you must contact with some good insurance providers or brokers for

Posted: 22 Jan 2009 06:46 Post Subject: hi need some help

Hi, I need some help. I'm from India & working as a professional Internet Marketer (home based business) I'm looking to go for business insurance. But I have absolutely no knowledge about these things. Can someone please guide me about what kind of business insurance I should go for?

Posted: 26 Jan 2009 04:35 Post Subject:

hey, what happened? kindly give me more details about business insurance

Posted: 27 Jan 2009 04:08 Post Subject:

Hi Horizon, we would be more than glad to help you, but, since most of the community members in this site are from US IMO they couldn't be of much help to you in Indian context. I'm sure that business policies are available in your country. You may need to contact an agent regarding policy details.

Make sure that you obtain both liability and coverage for your business properties- the building, inventory, records and the like.

Posted: 02 Feb 2009 05:06 Post Subject:

Hi everybody, I'm not sure if I'm posting my query in the right topic. But still it will be very kind of you to help me..
I'm a professional internet marketer working for a US based company. It's purely a home based business. Now I want to know is there any business insurance for this kind of business & is is necessary?

Posted: 28 Feb 2009 06:04 Post Subject:

Horizon,

I think there are still some outstanding questions about your situation before anyone here can answer it. First, keep in mind that most of us are from the US, as Rupert indicated, so it might be different in India. You should speak to your Indian agent.

That being said, in the US, you could PROBABLY endorse your homeowners policy to meet your needs. I say "probably" because you would need to know a little bit more about your company's coverage. We are talking about home-based businesses, but you say you "work for" a US company. Are you employed by the company and working at their direction? Or do you work as an independent contractor and merely sell the US company's products? If it is the latter, you will need more coverage than if you are an employee.

Next, if you are independent, do you make anything yourself, or ONLY sell the company's products? The reason I ask is that an endorsement to your homeowners policy probably will not cover products liability. If you need this coverage, you should look at an in-home business policy.

Also, if you are doing Internet marketing, you probably post a lot of things online. For this, you should probably have personal injury and advertising coverage, which an endorsement to your homeowners policy probably will not cover. You might need an in-home business policy.

In the US, there are a few companies that offer a specialized in-home business policy that is like a mini-Businessowners Policy. It is less expensive because it is for smaller business that operate out of their home. Unless you are an employee of your company, then you might want to ask your agent about it.

I hope this helps.

Posted: 21 Mar 2009 05:01 Post Subject:

do you make anything yourself, or ONLY sell the company's products?


I sell various products on internet. Most of the companies are from U.S.A.

In the US, there are a few companies that offer a specialized in-home business policy that is like a mini-Businessowners Policy.


That sounds nice. But I'm from India & talked to some people regarding this issue. But most of the people said There is no such separate policy for home business owners.

Posted: 04 Jan 2010 07:36 Post Subject: feedback

This kind of skills are very useful for my business so thank you so much.
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