Operating a business out of the comfort of your home can be a cost-effective and convenient arrangement. These situations have become increasingly plausible in recent years with the rise of digital workplaces and online advancements. However, whether you’re involved in e-commerce, offering consulting services, working on clients’ vehicles in your driveway or conducting other types of business, commercial operations typically require specific insurance considerations.

Why Do I Need Insurance for a Home-based Business?

You should first dispel the notion that because your home is insured, you’re adequately covered for business purposes. Many standard homeowners insurance policies may exclude commercial operations. Without additional coverage, company-related losses—such as if your business equipment is damaged or you’re liable for customers’ injuries while they visit your home—would need to be paid out of pocket.

What Coverage Options Do I Have?

Now that you understand your need for additional insurance, you can explore your options. Appropriate arrangements may vary depending on the nature of your home-based business and your unique circumstances, but the following options may be worth considering:

• Homeowners insurance riders—While standard policies generally exclude business-related losses and incidents, you can sometimes augment your coverage accordingly. For example, you could enhance your policy to include higher coverage limits for business property, such as your electronics, inventory and equipment.

• In-home business policies—Homeowners insurance endorsements may not always be sufficient or available. Alternatively, you can explore these separate insurance products that may be tailored specifically toward the needs of home-based businesses.

• Business owners policies (BOPs)—This type of policy can be a valuable investment for many small- and medium-sized businesses, often including those based out of homes. These arrangements typically include general liability insurance, commercial property insurance, and business interruption insurance, and they may offer overall savings compared with what you’d pay for three separate policies.

How to Get Home-based Business Insurance Near Me

If you operate a business out of your home in the Riverhead, New York, area, contact Lupton & Luce today to learn more about coverage options or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.