Corey Dargan: Hi! I am Corey with Wells Fargo Company. Today we're discussing how to ensure your home business.
You have registered your business, developed a business plan and set aside money to get started. But before you hang out your shingle, take the next step to make sure that your business is properly insured. And don't assume that your homeowners insurance covers your home business.
Standard homeowners insurance may provide some protection for business equipment, but coverage varies by policy and it may not be enough. In addition, your homeowner's policy will cover your business if a customer or supplier is injured on your property or while using your product. So, what can you do to protect yourself in your home business?
Add an endorsement to your homeowner's policy. Your homeowners ensure may offer an endorsement to your homeowners policy. It adds additional property coverage and some limited liability coverage.
Purchase in-home business insurance policies, some insurance offers specific in-home business insurance policies with some of the same features of large commercial policies, but with lower policy limits and at a lower premium.
For example, should you have to shutdown your business because of damage to your house? The in-home policy will cover the income the business loses and ongoing expenses such as payroll for up to one year.
Consider a business owners policy. Many insurances offer business owners policies combining three of the most important types of business insurance coverage- Property insurance, Business interruption service and Liability insurance. In addition to these types of coverage for your home business, you may also want to have Commercial auto insurance, Worker's compensation insurance and an Umbrella liability policy.
Remember a sound business plan includes coverage that provides the protection you need today. It can easily spend to grow with the changing needs of your home business. And if you're not sure what you need, work with an experienced insurance agent who is familiar with your unique needs to make sure your home business is protected.