Facts About Home-Based Business.
Do you operate a home-based business? If yes, then you need to consider getting business insurance. Many people believe that their home insurance covers their home-based business, but that's not true. Your home insurance policy is designed to cover your home, its contents, and any correlated personal liability, but not your business.
If you're using your home for purposes that your insurer isn't aware of, then it may invalidate your policy. So, it's important to notify your insurer about your home-based business. That way, you can make sure that your policy is still valid and covers your business-related activities.
Your home insurance policy may provide limited coverage for damage or loss of business equipment related to your home-based business. However, this coverage is only while the business equipment is in your home. For example, if you have computers or power tools that are used for your business and are damaged while in your home, your home insurance policy may cover the cost of repairing or replacing them. But, if your business equipment is stolen or damaged while in a vehicle or outside of your home, then your home insurance policy won't cover it.
Moreover, if a customer is injured while visiting your home, your home insurance policy won't cover the costs associated with that injury. This is also known as personal liability. So, it's essential to review your home insurance policy to confirm what coverage, if any, it will provide for your home-based business.
In summary, your home insurance policy isn't enough to cover your home-based business. You need to consider getting business insurance to make sure that you have the coverage you need. Remember to notify your insurer about your home-based business and review your home insurance policy to confirm what coverage it provides.