Setting up shop in your home has become quite prevalent in the U.S. In fact, over half of America’s businesses are home-based, but what you may not know is that your business may not be properly insured. Having the right type of protection along with adequate coverage can make or break that home-based business. All it takes is one unfortunate accident and you could be faced with the loss of your business, business assets, and reputation.
There are many variables when evaluating whether you need a business insurance policy or whether your current Alabama homeowners insurance policy would suffice. It is recommended you thoroughly review the provisions, conditions, and exclusions cited in your Alabama homeowners insurance policy in regard to business operations at your home and then discuss with your local Alabama independent insurance agent.
Size Up Your Home-Based Business
Every home-based business is unique and perhaps yours is so small that your Alabama homeowners policy is sufficient to meet your needs, but you need to size up your business to make sure you don’t fall into coverage gaps that may cause financial detriment. Below are some key factors to consider when assessing your business needs:
Business Property- Consider the amount of business property that is at your home on a regular basis. Your typical Alabama homeowners insurance policy does provide very limited coverage for business property while it is used or stored on your premises, but you need to assess your unique business situations and determine if that “limited” coverage is adequate.
Business Equipment- Business equipment can be costly and if you have a lot of equipment used solely in the scope of your business, you may find coverage is excluded or extremely limited. It is recommended you discuss your particular situation with your local Alabama independent insurance agent.
Liability- Your homeowners policy does come equipped with liability protection for guests at your home who sustain injury; however coverage does NOT extend to those injured in your home while conducting business-related activities. If you have customers/clients coming into your home to conduct business, it is recommended you purchase an Alabama business insurance policy.
Lost Data/Income– Imagine that you stored all of your clients’ personal and financial information on your computer and your computer was hacked. The cost to restore their information won’t touch the fact that all your clients now are faced with having their identity stolen. You need to be aware that this type of loss is excluded under your homeowners insurance policy and in order to have coverage for this type of situation or lost income, you would need to have a separate business insurance policy.
If you are outfitting your home with a business, you need to make sure you have the right insurance protection to suit your specific business needs. Otherwise it could mean the closing of your doors, so to speak. Our expert staff at Burkett & Associates is here to answer any and all of your questions regarding your home-based business and the insurance solutions that best fit your needs. Call us TODAY at 256-704-7400.
