There are 351,260 small businesses in Kentucky. If you own a home-based business, proper protection is necessary. The right home business insurance can be confusing.
An independent insurance agent will help find a policy for an affordable price. They work on your behalf at zero cost to you, making it a no-brainer. Connect with a local expert to get started.
What Is Home-Based Business Insurance?
There are several policies and coverages that a Kentucky home-based business can acquire. It can be as simple as extending coverage from your homeowners policy. Or as complex as adding multiple business insurances. The following protection could be utilized for your home business:
- Liability insurance: Pays for a bodily injury, property damage, or a slander lawsuit.
- Equipment breakdown insurance: Pays for the replacement or repair of business equipment that breaks down due to a power surge, outage, and more.
- Business property insurance: Pays to replace or repair any business property that is damaged 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 Kentucky home-based business insurance could cover various exposures. The amount and type of policies you choose will depend on your operation and how your home policy gets involved. 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.
The standard perils on your homeowners policy will usually extend with an endorsement. Things like fire, theft, and natural disasters are losses that are commonly covered. To know which route to take, consult with a professional.
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What Doesn't Home Business Insurance Cover?
There are many coverages that can be added to your Kentucky home-based business insurance. However, just like any other personal or business protection you purchase, there are exclusions. 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 its 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 items 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?
Your home-based business could be at risk for more than you know. In 2019, Kentucky had $4,661,744,000 in commercial insurance claims paid. When you're protecting your business, your home needs the right coverage as well.
Since your operation functions in your place of residence, both assets are at risk. One claim could cause damage and financial loss to your home and your livelihood. To avoid an attack on your personal and professional investments at the same time, review your policies for proper coverage.
How to Connect with a Kentucky Independent Agent
In Kentucky, home-based business insurance can be tricky if you're not a licensed professional. There are several factors that will determine the type of policies your business could need. To ensure you are obtaining adequate protection, consult with a trusted adviser.
An independent insurance agent has access to multiple markets, giving you options on coverage and premium. They can find a policy that fits your budget by shopping with numerous carriers. Connect with a local expert on TrustedChoice and start saving today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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