Skip Ribbon Commands
Skip to main content
Are You Covered?
  • Calling Home Is Serious Business
    From desktop to tablet to smartphone to printer, digital devices have made business possible anywhere, anytime. And that brings us to a key question from Your Trusted Choice® agent: Has your insurance protection successfully made the same transition?
  • Invasion of Privacy
    In December 2010, Honda joined the list frequented by major financial institutions and retailers, suffering a breach of customer data thought to affect over 2 million Honda owners. Stories such as these send shockwaves through industry, and while they often don’t result in damages, the fear is justified. The mistake most small business owners make is that they assume such breaches are the realm of large companies
  • D&O Insurance:  Protection from Boardroom Liability
    Many people will celebrate the holiday by giving back to their community. Volunteering time or services to a company or non-profit organization may be a selfless act of generosity, but these acts of goodwill can also expose volunteers to possible lawsuits if they are making decisions on behalf of the organizations or company. Fortunately, there is a way to mitigate the exposure to lawsuits and continue lending a hand.
  • Downside of Online:  Cyber Crime & Stolen Data
    What does a cyber crime cost? According to the Ponemon Institute’s First Annual Cost of Cyber Crime Study, published in July 2010, a business can expect to pay an average of $204 per customer record that is lost or stolen.
  • Your Building in Winter
    Winter brings the threat of freezing temperatures and harsh conditions to much of the U.S. Some places are well beyond the threat; it’s going to freeze—there’s no way around it. Such conditions pose unique hazards to commercial building owners. Following is some information on common winter threats and how they are addressed by commercial property insurance.
  • Cyber Attacks: Protecting Your Small Business from Data Theft
    Recently cyber-attacks were back in the news, and the latest attempted victim was the White House. According to an October 1st report from the Washington Post the White House acknowledged that hackers attempted to remove data from a White House computer. While the attempt wasn’t successful thanks to mitigation efforts, the attack should serve as a reminder to all small businesses that they face risks of similar attacks from data thieves, and they may not have the same level of mitigation systems in place.
  • Dependent Properties
    The damage caused by the March 2011 earthquake and tsunami in Japan caught the world by surprise. The devastation was indescribable at the local level. Also shocking were the resulting losses by businesses thousands of miles from the wreckage—losses suffered due to an interrupted supply chain.
  • How much building insurance is enough?
    As a small business owner, you know the importance of preserving your assets. For many business owners, the largest single asset they possess is their building. Whether you occupy the building or operate as a landlord (or both), consider key exposures in your risk-management and insurance planning.
  • Don't Get Robbed Twice!
    One of the often confusing attributes of crime insurance coverages is that the terms used in the insurance policies reflect legal definitions, not the meanings we assume in everyday conversation.
  • Insuring Income: The Lifeblood of Your Business
    If someone asks you if your firm has a catastrophe plan, how would you respond? Would your answer sound something like this: “There’s nothing in writing, however, if something happened that compromised our ability to earn we have a good idea what we would do.”
  • Business interruption insurance
    Would you believe that there is an insurance product specifically designed to help insure a solid, sustainable profit? In fact, without this coverage, hitting your profit targets may become impossible.
  • Where medical fits into liability coverage
    There are two extremely valuable provisions in a solid business insurance policy designed specifically to respond to incidents such as this. The goal of the provisions is twofold:  protect your business from the financial risk of such accidents—legal fees for defense, the potential for large lawsuit awards against you; and try to quickly respond to the pain of the victim in ways that help to avoid lawsuits in the first place.

  • Don’t Let the "Gottas" Determine Your Risk
    As the owner of a small business, you understand better than anyone the meaning of “risk.” The key is to know understand how much risk you can afford, and when or where is the right place to take risk.
  • Don’t Let Your Income Slip When You Do
    Chances are you started your small business with long days and longer nights.  You are fully aware of the truth of the old saying:  'When you are self-employed you work for the toughest boss in the world!"
  • Boom: Understanding Discontinued Operations Coverage
    As a homebuilder, you spent your life making sure the work you did was safe and sufficient. Every year you purchased a commercial general liability (CGL) policy just in case. You made it many years with no claims and want to reward your good work with a much deserved and overdue retirement in where else? Florida.
Protecting Your In-Home Business

Today more than 43 million Americans are operating full- or part-time businesses from the comfort of their homes, and these numbers continue to grow every year. One of the secrets to running a successful home-based business is being able to separate your business activity from your home activity.

Whether you spend two hours or 62 hours per week on your at-home endeavor, it remains a business with all the risks and rewards associated with owning a business. To safeguard against the risks, you need to be aware that your homeowners insurance policy offers limited or no protection for your business while it is being operated from your home.

If you rely on your homeowners policy as your only means of insurance protection, you may find your business underinsured or uninsured in the event of a loss.

Doesn't My Homeowners Policy Cover My In-Home Business?

Homeowners policies were never intended to cover business exposures. Consequently, coverage for the items you use in your business such as computers, fax machines, filing cabinets, tools and inventory are limited to $2,500 in your home and $250 away from home under most policies. And your homeowners coverage provides no liability insurance for your home-based business.

How Do I Get The Coverage I Need?
First, let's take a look at what coverage you may need. Insurance coverage generally falls into two categories. This is true of homeowners, auto and most business policies. Those two categories in business terms are:

• Property Coverage--Your business structures and possessions are covered against loss or damage caused by certain covered risks such as fire and theft.

• Liability Coverage--This means that if you become legally obligated to pay money to another person for bodily injury or property damage caused by your business, your insurance company will cover those costs (up to the maximum indicated in your policy), including the costs of defending your business in the lawsuit. This liability coverage extends to medical payments for injured parties, for which you may be held responsible.

Of course, every business has its own special requirements. There are many specific insurance coverages available to address the needs of your in-home business.

What Are My Policy Options?

There are several types of insurance policies available for in-home businesses. They include:

• Incidental Business Endorsement--Depending on your business, you may be able to attach an "incidental business endorsement" to your existing homeowners policy which will cover other structures or equipment on your premises that you use for business. This endorsement can also be tailored to include your business liability.

• Business Owners Package Policy--If your in-home business does not qualify for coverage under the "incidental business endorsement" you can purchase coverage for your home-based business under a business owners package policy, referred to as a BOP, which provides property and liability coverage.

• In-Home Business Owners Policy--Some insurance companies offer policies that combine homeowners and business owners coverage into a single policy, designed specifically for in-home businesses. These policies provide both business coverage such as business liability and replacement of lost income, and homeowners coverages such as fire, theft and personal liability. These policies eliminate gaps and duplications in coverage, and the rates reflect the in-home status of your business.
Check with your independent insurance agent to determine which of these coverages is appropriate for your in-home business.

Vehicles Used In Your Business

If you have a personal vehicle that you sometimes use for business or if your in-home business is the owner of one or more vehicles, your Trusted Choice® insurance professional can advise you whether you will need to purchase a Personal or Commercial Automobile Policy.

Protecting Yourself

If your in-home business is your full-time occupation, you may need health and life insurance and a retirement plan. In other words, you may need to provide employee benefits to yourself. Some options to consider are:

• Life Insurance--The insurance company pays a stated amount of money upon your death to the person(s) named as beneficiaries by you.

• Disability Insurance--This insurance provides for payments to be made to you if sickness, disease or bodily injury prevents you from being able to work.

• Health Plan--There are various plans available that cover doctor visits, hospital services, medical tests and other costs incurred in medical care.

• Annuities--These are periodic monetary payments made over a specified term or for your life. You make payments to the insurance company in a lump sum, periodically, or as you arrange with the insurance company. It may be possible to purchase a combination of annuity and life insurance.

• Workers Compensation--If you hire employees, you will need to know about this type of insurance. All states require employers to purchase it if they have employees. Workers compensation insurance offers a schedule of benefits, without regard to liability, should an employee become injured as a result of a job-related accident or suffer an illness attributable to a workplace cause. If you own an incorporated business, workers compensation also can cover you in case you are injured.

A Final Note

Remember that in order for any business to be successful it must be run like a business, regardless of its location. A crucial element in business success is the ability to minimize risks which can be accomplished with a comprehensive insurance program. Check with your Trusted Choice® insurance professional for the best business coverage for your in-home business.

What Are You Looking For?

 

Find Us On Facebook

Get in Touch

127 South Peyton Street
Alexandria, VA 22314
Phone: 800.221.7917
Fax: 703.683.7556
Email: Trusted.Choice@iiaba.net