Business Insurance for a Home Business

by Insurance Maze » Fri Feb 15, 2008 12:32 am

More and more people are starting a business from their home and I don't think, since October, I have seen a single post regarding business insurance.

Do we have any home business owners out there?

If so, how have you separted your home insurance from your home business insurance?

Total Comments: 5

Posted: Fri Feb 15, 2008 05:45 am Post Subject:

If so, how have you separated your home insurance from your home business insurance?


Well, I have reasons to believe that home business insurance has a greater risk involved than the typical home insurance.
Am I right! ClaraDWillis

Posted: Fri Feb 15, 2008 05:50 am Post Subject:

Hi!

When we talk of the home business insurance, we must remember that it is all about covering the business operations as well as the people associated with it. A business generally has assets with larger potential values attached with its operations. On the other hand the home insurance is just about protecting from the risk of losing in terms of some material worth of the place & the domestic assets. I believe thats what ClaraDWillis wanted to clarify.
clumsyfellow2k8

Posted: Fri Feb 15, 2008 05:57 am Post Subject: legal bindings

Hey clumsyfellow,

What about the legal bindings which get associated with a business from time to time??

A business generally has assets with larger potential values attached with its operations.


Not only the assets, a coverage is also about assuring the legal relations indirectly which may be altered in the event of any potential damage or loss. Hope I'm correct.. Solver67

Posted: Fri Feb 15, 2008 06:17 am Post Subject:

If so, how have you separted your home insurance from your home business insurance?


IMO the nature of the insurable interests separate the home business insurance from the traditional homeowners insurance. The above posters have rightly mentioned the interests associated with insuring your home business. While covering your business property you may need to put more value to an asset that you use for the business purposes, than a normal homeowner. Next comes the structure, raw material, inventories etc. Also you need to take care of the legal aspects to secure your business.

The assets related to the business are more valuable to the entrepreneur than the common household stuffs.

Posted: Fri Feb 15, 2008 02:37 pm Post Subject:

Most people who start a business operation out of their homes feel comfortable about being adequately protected by their home insurance policy.

There are some home insurance policies that provide minimal property coverage for an "incidental business". Relying on your home business for 100% of your income would not be considered "incidental".

Many home insurance carriers provide endorsements to provide limited property coverage for a business out of your home.

I have never seen a home insurance policy that provides liability insurance coverage for a home business operation.

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