Homeowner Insurance Gaps Could Lead To Strikeout Additional Articles Insuring Your Home Business Understanding Commercial Liability InsuranceAs the economy continues to sputter, many displaced workers are turning to home-based businesses to help pay their bills. But as these entrepreneurs review their new venture lineups, they should pay close attention to their insurance coverage.
Homeowner policies typically have limitations specific to a business run from the home. These may include coverage for buildings such as a garage, where the business is housed; office equipment or business property; and legal liability that may arise out of a lawsuit generated by the home-based enterprise.
The Small Business Administration estimates that almost half of all U.S. businesses are home-based and more than 20,000 gross more than $1 million annually. A national survey by the Independent Insurance Agents & Brokers of America indicated that 58 percent of home-based businesses have no business insurance. Almost 40 percent of surveyed home-based business owners thought that their homeowner policy would cover their small company, and more than 10 percent of those without business insurance experienced a loss.
“Many home-based business owners think they’re too small to need a business insurance policy,” said Candysse Miller, executive director of the Insurance Information Network of California. “But in the real world, lawsuits don’t discriminate. Whether you’re big or small, your business suffers.”
To help understand the risks and insurance options available, IINC has advice specifically for home-based business owners. By reducing risk and maintaining adequate insurance, entrepreneurs can concentrate on running their business and raising their profits.
IINC is a nonprofit, non-lobbying communications association representing the property/casualty insurance industry. For more information, visit our Web site at www.iinc.org.
ADDITIONAL RESOURCESSmall Business AdministrationIndependent Insurance Agents and Brokers
