Q: Will my homeowner’s insurance policy cover my home-based business?
—Home Biz Bro
A: Dear Biz Bro:
You might think that your homeowner’s policy would protect a business run out of your home, but this is a common misconception. Homeowners insurance doesn’t offer coverage for any business property, including both equipment and structures used for business purposes. It also doesn’t cover business-related liabilities, such as slip-and-fall accidents.
Although you can get extra coverage added to your homeowner’s policy to cover your home-based business, if you run a business out of your home, you really should get both homeowners and business insurance. At a minimum, you’ll need business liability coverage, property insurance, and business interruption insurance, which can be purchased bundled together under a typical business owner’s policy.
A Family Business Lawyer™ can support you in determining what types and levels of insurance coverage will best protect your home business.