Business Insurance and why you need it - or do you?

Surveys have shown that most home-based businesses are not adequately protected by business insurance. The Bureau of Labor Statistics of the U.S. Department of Labor, says you are one of the 19.8 million people who do some work at home as part of your primary job.

If you work out of your home at least once a week, then you’re in the 15% of workers who make up the nation's total labor force.

Another survey completed by International Communications Research on behalf of the Independent Insurance Agents & Brokers of America (IIABA), found that most of the 11 million home-based businesses are vulnerable to significant financial losses because they don’t have the proper business insurance coverage.

The survey showed that 10% of U.S. households are operating some type of full- or part-time home-based business, but nearly 60% of these businesses don’t have business insurance coverage.

When they were asked about the lack of business insurance, roughly 40% of home-based business owners thought they were protected by some other type of coverage.

30% said their business is too small to insure.

20% of them didn’t have a reason for insurance.

Depending upon the type of business you are operating or intend to operate, you may need accident and health insurance, income replacement, public liability, professional liability, business interruption, excess medical coverage, etc.

The growth of home businesses has sparked an increase in the variety of insurance plans ready to meet the demand for coverage. There are riders to homeowner’s insurance, business owner’s packages and combination in-home business owners’ policies all which offer protection in case of common calamities.

Adequate and proper insurance for your home office can save time and expense later and just might save you a lot of grief.

The correct coverage could even keep your business alive if some calamity or disaster strikes.

Probably the one mistake most often made by home-based entrepreneurs is assuming that homeowner’s policies provide adequate coverage for business losses.

Most of the time they don’t.

A good example of this is many homeowner’s policies insure computer equipment, but restrict your coverage to only $2,500. Some restrict coverage to $250 when equipment,like a computer,is damaged or lost away from the home office. That probably is not going to be enough to cover your costs.

Sometimes your equipment won't be covered at all if it’s used away from your home office.

Your office furniture, supplies and other usual equipment found in a home office might be specifically excluded from your homeowner’s policy altogether, because they’re used in a business-related activity.

It is beyond the scope of what we wish to accomplish with this article to go into descriptions on each of the risks and or types of business insurance you may need.

We will however, attempt to find some good contacts for you to discuss your needs with such as an insurance broker or other professionals that are well regarded in their industry.

When we find some, we will list them on this page.

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