Do You Operate a Home-based Business?
Especially in these COVID times, home-based business operations are on the increase. Many home-based businesses may be either underinsured or uninsured because the owners thought their business activities were covered under their personal residence policy. In order to be properly protected, a Home-Based Business extension needs to be added to your personal homeowner’s, condominium or tenant’s policy. Unless your insurance company is aware of your home-based business, you may even void your policy. For example, if your house burns down, you may find that your fire coverage is void because you didn’t tell the insurance company that you were using your home for business. Business property is also excluded under a personal lines policy, so if your computer used for business purposes is stolen, it is not covered. Liability exposure arising from your home business, also requires protection; for example, if a delivery person slips and falls on your premises when making a business delivery. Depending on the scope and nature of your business , you may actually require a separate commercial policy. Contact your broker to arrange the appropriate coverage.