Folks across the country have always counted “starting a business” as one of the freedoms they enjoy. Whether it’s a paper route, jewelry sales, or a landscaping company, home based business account for more than half of the businesses started each year (and the number is probably higher). Often times, when someone starts a home-based business, they are working within the confines of their passion, which means that they are focused on what they love (whatever it is the produce), and not focused on other things that will matter down the line (insurance, taxes, etc.).
Many people are surprised when they learn that their home-based business and the many risks that it encompasses is not covered by their homeowners policy. Think about these possibilities as examples of things that ARE NOT COVERED by your homeowners policy (typically):
- Your business laptop is stolen while you’re traveling.
- A customer visiting your home slips and falls (serving wine at that jewelry party?).
- A fire at your home temporarily puts you out of business. The lost income and additional expenses to get back in business are not covered.
- Professional errors and omissions.
- Inventory losses.
Think about all the home-based businesses today. Make-up demonstrations. Jewelry parties. Cooking products demonstrations. Are you a photographer? DJ? Do you give piano lessons? How about preparing someone elses taxes? The list goes on and on.
Fortunately, insurance to cover these business cost pennies on the dollar. If you have a home based business, think about the risk if you aren’t covered – it might be larger than you think.