Common coverages for home-based businesses include personal business property, professional liability, business income, personal and advertising injury, loss of business data, crime and theft, workers’ compensation and auto coverage. Depending on the type of home-based business you have, not all coverages apply, and other coverage options may be available.

Coverage Options

Based on your business needs, you have three basic coverage options to choose from, depending on your level of risk:

  1. Homeowners Policy Endorsement. This provides the least amount of coverage and, therefore, is not ideal for most home-based businesses (depending on the level of risk). While it may provide enough coverage for a freelance writer with one computer and no business foot traffic, it’s not enough for someone who employs others, has clients visiting his or her home or has valuable business equipment and/or inventory.
  2. In-home Business Policy. More comprehensive than a homeowner’s policy endorsement, in-home business coverage is a stand-alone policy that provides higher amounts of coverage for business equipment and liability.
  3. Business Owners Policy, or BOP. A BOP bundles property and liability insurance into one policy. Created specifically for the small- to mid-size business, a BOP covers your business property and equipment, loss of income, extra expense and liability. It is the most comprehensive property and liability option. It does not include workers’ compensation, health or disability insurance, which are available as separate policies

What’s Your Risk?

While most homeowners insurance policies do cover a limited amount of business equipment—computers, copiers and printers, to name a few—it’s likely that what you own is worth more than your policy’s limits. Also, your homeowners liability insurance probably won’t cover any injuries that may occur to the employees or clients that you have on your premises. What’s a home-based businessperson to do?

Have a question? Get an answer. Learn more at ehd-ins.com or call us toll-free 1-800-544-7292. Our experienced insurance and risk management professionals would be happy to answer your questions, help you explore your options and develop a customized strategy for you and your organization.

About EHD

Established in 1896, Engle-Hambright & Davies, Inc. — now EHD — is one of the most respected insurance brokers and advisors in Pennsylvania and one of the largest and most reputable full-service insurance brokers in the United States. We have offices in Exton, Lancaster, Pittsburgh and Reading and offer commercial insurance, employee benefits, personal insurance and risk management services to businesses, non-profit organizations, public agencies and individuals throughout Pennsylvania, New Jersey, Delaware, Maryland and Ohio.

EHD has access to all regional, national and international markets, holding preferred status contracts among many insurers, which provide the leverage to negotiate the most favorable coverage and financial terms for our clients. We are absolutely committed to client service, and our staff of over 100 insurance professionals is among the most experienced and knowledgeable that you will find anywhere. It is no wonder why we are the partner-of-choice for over 5,000 organizations, with a client retention rate that approaches 100%.

Learn more at EHD-Ins.com or call 1-800-544-7292. Note: not intended to be exhaustive, nor construed as legal advice. Readers should contact legal counsel and/or an EHD insurance professional for appropriate advice. Original content source: © Zywave, Inc. All rights reserved.