I Have A "Small Home Business" In My Home. Am I Covered?

Do you need business insurance? The answer is yes and no. Some very limited coverages apply automatically. You should discuss this with your broker with a view to reviewing the coverage versus the value of stock you have on hand and any adjustment you have to make on liability insurance. You might qualify for some home based business coverage but it may not be adequate for your needs.

Your home insurance wordings do give some coverage for an incidental office - is yours incidental? If you have an office at another location then the home office is regarded as incidental.

Your children are allowed to have a home-based business and the home insurance will automatically extend liability. This is good to know for the teenager who shovels snow, does yard work or has some other money-making enterprise.

Most of the insurance companies offer a home-based business policy to homeowners. If your business fits their package then your business insurance can be added to your home policy. You will need to consider what you need for contents and liability coverage. This can be an economical solution to your insurance needs as a home-based business package is often much less expensive then a stand-alone business policy.

Discuss your specific situation with your broker or agent. You work hard. Your insurance should work hard for you as well.