Through a survey of business owners, the US Census Bureau found that slightly more than half (51.6%) of all small businesses in this country are home based. Even though these businesses are typically very small with few or no employees, many can benefit from the protections that business insurance can provide.
If you are among the Maryland residents who run a home-based business, a local independent agent can help you find home business insurance at an affordable price. That way, you can rest assured that your business is suitably covered in times of trouble.
Set up an obligation-free consultation with an independent insurance agent near you to learn more.
What Is Home Based Business Insurance?
Home-based business insurance is also referred to as “in-home business insurance” or just “home business insurance.” This insurance is similar to a business owners policy (BOP) or business insurance policy, but with smaller policy limits and a more affordable price.
Does Homeowners Insurance Cover Home Based Businesses?
Homeowners insurance does provide some coverage for home-based businesses. However, this coverage is very limited and, unless your business is very small, may not be enough to fully cover your business assets and liability risks.
Most homeowners insurance policies limit coverage for business property to just $2,500 and may provide just $250 in coverage for your business property when you take it off premises, such as while you are using it on site for a job.
Moreover, if your business is sued, the liability coverage provided by your homeowners insurance is not likely to provide you with any coverage at all.
Do Home Based Businesses in Maryland Need Insurance?
If your home-based business is very small and your assets include little more than a desk, chair, computer and filing cabinet, you most likely have enough coverage through your homeowners insurance to cover your business property.
However, if you can answer “yes” to any of the following questions, you would probably benefit from purchasing home based business coverage.
- Does your business own a lot of expensive property?
- Does your business have employees, and if so, do they work out of your home?
- Do your clients come to your home for meetings, consultations, or services?
- Do you store personal information about your employees or clients, whether on paper or on your computer?
- Do you provide professional services for which an error on your part could lead to your facing a liability lawsuit?
- Do you make products in your home that you are selling to others?
If you think that home business insurance might be a good idea for you, you can consult a local independent agent for guidance and advice.
How Much Does Home Business Insurance Cost in Maryland?
The cost for home-based business insurance can vary from one business to the next because it is based on several factors such as the following.
- The value of your business assets
- The liability risks your business faces
- Whether you have employees, and if so, how many
- Whether you see clients in your home, and, if so, how often
- Whether you travel to different locations to do your job
- The amount and types of coverage you are buying
On average, small businesses pay about $25 a month for their coverage, while larger home-based businesses often spend more than $100 a month.
The only way to find out how much coverage will cost for your home business in Maryland is by contacting a few competing insurance companies and requesting customized quotes. Independent insurance agents can save you time and money by doing the comparison shopping on your behalf.
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What Does Home Business Insurance Cover?
Your home-based business insurance can cover as much or as little as you want it to. An independent insurance agent can help you choose the policies that are a good fit for your company.
A standard policy is likely to include the following.
- Commercial general liability insurance: This is standard coverage with any type of business insurance policy. It can cover expenses like court costs, legal fees, settlements, and judgments if your company is sued for a covered event. It includes the following types of coverage.
- Premises liability insurance: This can provide coverage if clients are injured while in your home.
- Product liability insurance: This can provide coverage if a product you are producing or selling causes injuries or illnesses to customers.
- Advertising liability insurance: This can cover against accusations of deceptive pricing, false advertising, copyright infringement, and other marketing errors.
- Commercial property insurance: This can pay to repair or replace your business-owned property if it is lost or damaged due to a covered event.
- Business interruption insurance: This can provide a continuation of income if a covered disaster like a fire or a hurricane forces you to temporarily shut down business operations while repairs are made.
Depending on the type of business you own, there may be other policies you will want to consider. Your insurance agent may recommend that your supplement your home business insurance policy with additional coverage such as the following.
- Cyber liability insurance: This can cover your liabilities if hackers break through your firewall and access sensitive data stored on your computer.
- Inland marine insurance: This can cover your business-owned property when it is in transit or is being used at a different location. For instance, if you have a landscaping business, your lawn equipment will be covered while on the job and while you are driving it to and from a work site.
- Workers’ compensation insurance: This can cover the cost to treat worker injuries and provide disability pay if your employees need time off to recuperate. With few exceptions, this insurance is mandatory in Maryland if your home-based business has at least one employee.
- Commercial vehicle insurance: This is required if you have business-owned vehicles. If you use your personal vehicle for work-related purposes, you should notify your car insurance company to see if you can purchase a rider to ensure that you are covered if you get in an accident while on the job.
Talk to an independent agent to learn more about your various coverage options.
Where Can I Find the Best Home-Based Business Insurance in Maryland?
If you are looking for the right insurance to cover your home-based business, look no further than a local independent agent. These experienced professionals can do a complete risk assessment of your business and can recommend the right policies to cover against any potential exposures it may have.
Also, because they do not work for a particular insurance company, these agents are free to shop around to find you the policies you need at the most competitive prices. With more than 200 independent agents in Maryland, it should be easy to find an insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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