If you own a home-based business in Florida, you're not alone. There are roughly 2,500,000 small business owners in the Sunshine State. When you're unsure what home business insurance is needed, consult with a professional.
Fortunately, an independent insurance agent can help with coverage and premium options. They work with several carriers, giving you the best deal in town. Connect with a local expert to get custom quotes today.
What Is Home-Based Business Insurance?
When you're working out of your Florida home, additional coverage could be necessary. There are specific things your standard homeowners policy won't cover. Home-based business insurance will supply protection for all your operational exposures. The following insurance could be used.
- Liability insurance: Pays for a bodily injury, property damage, or slander lawsuit.
- Equipment breakdown insurance: Pays for the replacement or repair of business equipment due to a power surge, outage, and more.
- Business property insurance: Pays to replace or repair any damaged business property due to a covered peril.
- Professional liability: Pays for legal fees when you're sued due to possible faulty professional services offered.
What Does Home Business Insurance Cover?
When it comes to insuring your Florida home-based business, there are a couple of choices. The one you choose will determine how much coverage your operation needs to be properly protected. Check out some options below.
- Homeowners policy coverage: If you simply do desk work from your home office and don't have any business property or any other risk exposures, then you may be able to extend coverage from your homeowners policy. This coverage will only give you your current liability limit, and that's pretty much it.
- Separate business policy coverage: If you have a more robust business with equipment, inventory, business property, and more, you'll need separate business insurance. These policies may need to come from your same home insurance carrier, depending on their guidelines. The policies can include general liability, commercial auto, business property, equipment breakdown, professional liability, and more.
These losses can include damage from fire, theft, and natural disasters. The basic perils are typically included on your homeowners policy and extend if that's the route you take. To know which option will work best for your home business, consult with a professional.
What Does Home Business Insurance Not Cover?
Just like any other policy you own, there are exclusions. Since you work out of your home, your business and homeowners insurance gets intermingled. Sometimes there is crossover when a claim occurs, which is why carriers like to secure all policies. Typical policies will not include the following coverages without adding them separately.
- Inventory: If you have business inventory, your policy will not provide coverage for the replacement or repair. You will need a business property policy that endorses this protection.
- Business equipment breakdown: Equipment breakdown due to a power outage or more will not be covered under your home or standard business policies without manually adding it beforehand.
- Customers on premises: If you have customers showing up at your house to pick up an item or come inside for business purposes, your policy could exclude this. Most homeowners policies will prohibit this risk. Some business policies may pick up this exposure depending on what's involved.
- Commercial auto: If you use your vehicle to run your business, you may need a commercial auto policy. This is separate insurance that will need to be quoted and is not automatically included.
- Professional liability: If you offer professional services like accounting, you'll need to have your own professional liability coverage for any poor advice or negligence that could occur. Your standard business insurance policies will not provide coverage for this type of lawsuit.
Do Home-Based Businesses Need Insurance?
In 2019, Florida had $36,870,506,000 in commercial insurance claims paid. A home-based business loss could impact more than you think. Since you need coverage for your operation and your personal home, there is more at risk.
Your business and home could be exposed to the same claim, which would pose a financial risk to both. The lines can get blurred rather quickly. This makes having the right policies from the get-go crucial.
How to Connect with a Florida Independent Agent
When you're working out of your home, you may be surprised that business insurance is necessary. In Florida, there is more at risk than just your operation if you're unprepared. To sort out your options, consult with a licensed adviser.
An independent insurance agent can help you find the right policy for your budget. They have access to multiple carriers, giving you time to focus on what matters. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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