New Jersey has 884,049 small business owners. Some of them operate out of their homes. If you're one of them, home business insurance may be necessary.
Fortunately, an independent insurance agent can help. They have access to several markets, giving you the best options. Connect with a local expert to get tailored quotes.
What Is Home-Based Business Insurance?
If you work out of your home in New Jersey, you'll want protection. Home business insurance can provide coverage for your operation while your working from your place of residence. The following insurance could be used:
- 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 home-based business could include coverage similar to other business policies. There are two courses of action that can be considered when obtaining insurance. How in-depth your business is will dictate the insurance you'll need.
- 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.
What Doesn't Home Business Insurance Cover?
Your home-based business insurance can be confusing. Since you work out of your house, your homeowners policy coverage is involved. That is why the carrier that writes your home insurance may insist on obtaining your separate business policies to keep it all under one roof. This will avoid any confusion when a claim arises. 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?
In New Jersey, $13,470,081,000 in commercial insurance claims were paid in 2019. When a loss occurs, it could put you out of business without the right insurance. If you run an operation out of your home, you're even more at risk.
The fact that your business is intertwined with your personal assets, like your home, could mean a double whammy of loss. If you get sued without proper insurance, your business and your home could be at stake. It is essential to have both avenues adequately protected in the event of a claim.
How to Connect with a New Jersey Independent Agent
In New Jersey, your home business insurance should be customized to fit your needs. Since there are several ways you could be insured, it's best to consult with an adviser. Accurate coverage is necessary if you want to avoid financial ruin.
An independent insurance agent can help. They have access to multiple markets so that you get a policy that fits your budget. Connect with a local expert on TrustedChoice to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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