Insurance is almost never a fun topic to discuss. Unless you’re reading an exciting novel about insurance fraud or you’re getting a major insurance payout for something minor, insurance is usually a dull, if not grim topic. But, like many somewhat dull topics, insurance is a very important thing to read about, discuss, and research.
This is particularly true for non-traditional business owners. As more and more people enter non-traditional professions, home-based insurance has become more crucial. Many small businesses that are run out of the owner’s home forgo the insurance process. This occurs for several different reasons. In some cases owners are confused about what may already be covered by homeowner’s insurance and others are worried that the premium costs will outweigh the actual protection offered. As a home-based business owner, it is essential that you research your insurance options and understand the different policies available.
There are three basic types of home-based business insurance to choose from depending on your business specifics.
Rider to homeowner’s insurance policy
This is one of the simplest ways to obtain business insurance protection and is typically one of the least expensive. A “rider” is an add-on to homeowner’s insurance or a renter’s policy to also cover your company. The cost of this add-on is typically minimal, but will only provide a small amount of additional coverage as well. This type of business coverage is most appropriate for extremely small home businesses. One-person businesses without a lot of valuable equipment or many business-related visitors would suit this type of policy well. Business owners who are unlikely to suffer any major loss due to some sort of disaster such as fire should consider a rider. If your home business operation is any larger than just one person and doesn’t fall in the other categories listed above, looking into your other insurance options is probably wise.
Business owner’s policy