Something to consider when running a business from your home is whether or not your homeowner's insurance will be sufficient in the event something happens. You should know that most homeowner's policies have little to no coverage for home-based businesses, and this could potentially be a serious risk you are taking without even realizing it.
It seems like more and more often people, especially millennials, are either working from home or starting small businesses from home. These entrepreneurs have so many things to worry about while trying to run a successful business and get things of the ground that they don't think to contact their insurance agent to discuss their potential risk. Even worse, sometimes they might not have a local independent agent they can contact and get stuck calling 1800-lizard to eventually give up and forget about it.. You need to start thinking outside the box about potential risks involved with your home business.
Lets say you are starting up your own cupcake business. Your friends always say you make the best cupcakes in the world and you need to start selling to local bakery's and markets. They even offer to help! So you start cranking out those cupcakes and eventually find yourself running your kitchen oven all day long. Unfortunately your oven catches on fire and burns up all the cabinets, appliances, walls in your kitchen, and you have smoke and water damage throughout the house. Easily resulting in over $85,000 to restore and repair everything.
Are you confident the above scenario will be covered under your current policy? Technically commercial cooking in your home? Is it fair for your insurance company to pay for the damages due to your business operations? This is just one questionable example.
Home based salons are common here in Northwest Indiana. If you have clients come to your home and you cut, color and do everything else to their hair. What happens if you cause serious bodily injury to someone? Or, you might have more traffic on your property than typical, and the risk for someone slipping and falling on their own face is higher(happens way more than you think). Most homeowner insurance policy's liability coverage is going to have an exclusion for this type of thing.
I think you understand the point. It is something to consider and I hope this opens your eyes if you are running a business from home. Don't worry, there is an answer. We have programs to protect your business and your home for you to safely run your business from home.
Briggs Agency, Inc