There are 86,550 small businesses in South Dakota. Some of those operate out of the owners' homes. When you run a company from your residence, you'll need home business insurance.
Fortunately, an independent insurance agent can help with coverage that fits your budget. They work with A-rated carriers so that you can relax. Connect with a local expert for tailored quotes today.
What Is Home-Based Business Insurance?
If you own and operate a South Dakota home-based business, there are numerous coverages you can acquire. Some may fall under your primary home policy, while others will need separate business coverages. The following protection could be utilized for your home business:
- Liability insurance: Pays for lawsuits for bodily injury, property damage, or slander.
- Equipment breakdown insurance: Pays for the replacement or repair of business equipment damaged due to a power surge, outage, and more.
- Business property insurance: Pays to replace or repair any business property 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?
The type of insurance your home-based business will need depends on several factors. The industry you are in, your property exposures, and gross annual sales will all play a role. 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.
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What Doesn't Home Business Insurance Cover?
Similar to your other South Dakota insurance policies, exclusions will apply. You can obtain insurance for many risks. Some will not be covered under your primary policies and need individual coverage. Typical policies will not include the following protection without adding it 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 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 South Dakota, $2,227,477,000 in commercial insurance claims were paid in 2019 alone. If you're trying to protect your assets, there are several coverage options you may need. Your home-based business will want the same insurance as any small company to protect your livelihood.
Since you're running your operation out of your residence, there is more at risk. Both your personal and professional investments are exposed and could result in financial ruin. A trusted professional can help you obtain the right coverage.
How to Connect with a South Dakota Independent Agent
In South Dakota, your home-based business insurance is crucial to protecting your company. If you own a business that is run out of your residence, there are still risks involved. Your coverage will depend on numerous factors and personal data.
Fortunately, an independent insurance agent can help with coverage and premium options. They work with several carriers so that you get the best policy for an affordable price. Connect with a local expert on TrustedChoice to save big.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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