Individuals - running a business out of their homerarely purchase In-Home Business Insurance. Statistics have shown that two-thirds of insureds that manage a business from their home do not have adequate insurance. Homeowner’s policies are not designed to cover losses stemming from a business. Most people making money from their home don’t realize their liability and the limitations.
Why an In-Home Business Policy is Important
If an insured is making money from the confines of his or her home or managing a business from the house, their homeowner’s policy will not usually cover damages related to the business.
Hobbies Are Businesses Too
While the staggering statistics are alarming, the low levels of coverage are mostly due to unawareness. Many small business owners consider the way they make money in their home to be a hobby. As such, they don’t perceive the need. Hobbies are businesses, too. If a hobbyist sells goods or services, then it is classified as a business. Profitability is irrelevant with regards to coverage on your homeowner’s insurance.
Insured Not Covered
With roughly 1 in 8 homes running some type of home based business and nearly 60% of these individuals not carrying In-Home Business Insurance – the need for coverage is high.
||For example, a photographer forgets to use a flash at a wedding reception. The grave mistake leads to the bride and groom suing the photographer for $15,000. This lawsuit certainly isn’t covered by homeowner’s insurance.
Another example features multi-level marketing – a woman holds $6,000 of nutritional supplements inventory in her home. A fire occurs inside her home and destroys the entire stock. A standard homeowner’s policy would not cover most of the loss.
These are just two examples that customers believed were covered, but were not. By understanding how much damage can be done by not insuring a business or hobby – most insureds with small operations will find benefit from an in-home business policy.
This is just an example of in-home businesses that may not be covered under a standard home policy.
Bill Quickel’s – Insurance Plus Agencies Inc.
- Fine Jewelry Sales / Repair
- Disc Jockey
- Pet Sitter
- Tax Preparer
- Travel Agent
- Computer Repair
114 Court St. Pomeroy, Ohio 45769
(740) 992-6677 or EMAIL