When you work out of your residence in Indiana, you'll need the proper coverage. There are numerous options you'll have when selecting protection. A home-based business insurance policy will help.
If you use an independent insurance agent, you'll get the best of both worlds. They do the shopping for you at no cost so that you can find policies and premiums that fit your budget. Connect with a local expert for custom quotes.
What Is Home-Based Business Insurance?
Your Indiana home-based business could need several policies. Your homeowners insurance may be able to cover the exposures. Or you might need separate business coverage altogether. The following protection could be utilized for your home business:
- Liability insurance: Pays for a lawsuit for bodily injury, property damage, or slander .
- Equipment breakdown insurance: Pays for the replacement or repair of business equipment damaged by 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?
Your Indiana home-based business insurance can protect against many exposures. The type and amount of coverage necessary will depend on numerous risk factors. 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 home insurance carrier, depending on their guidelines. The policies can include general liability, commercial auto, business property, equipment breakdown, professional liability, and more.
Homeowners insurance can extend coverage in some cases. This will depend on your carrier and your industry. For everything outside of that, you'll need separate business insurance policies.
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What Doesn't Home Business Insurance Cover?
Just like any small business protection, there will be things that insurance won't cover. Exclusions will apply to your home-based business insurance and should be carefully considered. 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 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 the 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?
When you operate your business out of your home, you could be at risk. In Indiana, $6,780,466,000 in commercial insurance claims were paid in 2019. The proper coverage for your exposures is necessary.
The type and amount of insurance will depend on what you're doing. Each industry has its unique risk factors and that could negatively impact your residence. Both assets are on the line when you don't have adequate insurance.
How to Connect with an Indiana Independent Agent
Your Indiana home-based business insurance is a big deal. It could be a mistake to expect your homeowners insurance to foot the bill for your entity. When you're searching for coverage that won't leave you exposed, consider using a professional.
Fortunately, an independent insurance agent can help. They have access to multiple markets so that you get coverage for a low price. Get connected with a local adviser on TrustedChoice in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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