• Pauline Handy

Is Your Home-Based Business Properly Insured?

Are you a professional using you home to conduct business? Here's what you should know.

A homeowners policy or any other type of personal insurance is just that, personal in nature. So if you have a home-based business, what kind of coverage do you need? That depends on the kind of business you have.


Who needs commercial insurance?

If you have a home-based business, you should have commercial insurance. Do you have any inventory, professional equipment or expensive computers? You'll want to get specific coverage for that.


If you sell a product or give advice, you’ll need special liability coverage. And if you have employees or customers visiting your home office, you’ll need commercial general liability, too.


The good news is that commercial insurance adapts to the needs of every business. There’s even an affordable product designed for small businesses: the business owners policy (BOP).


What’s a BOP?

Bundled at a reduced premium, BOPs include coverage for a company’s most pressing needs: liability in case clients are injured, property insurance for the office and its business contents, and business interruption coverage. The purpose of a BOP is to help you overcome catastrophic events and liability lawsuits so you can keep fighting the good fight.


According to the Insurance Information Institute, a quarter of small businesses never reopen after a major disaster. The Federal Emergency Management Agency estimates that percentage is even higher, at 40%. But if you have a BOP, you’ll receive money to pay your current bills, cover payroll during repairs and replace lost equipment and inventory, too. That will help you protect the business you’ve been working so hard to grow.


What else do you need?

Commercial insurance also has several policies and endorsements to cover the specific needs of your business, such as:

  • Professional liability (errors and omissions) for professionals giving advice or producing work that others rely on

  • Product liability insurance if you sell products

  • Commercial auto insurance if you use your vehicle for business purposes

  • Advertising injury if your trade exposes you to libel or slander that may harm your brand’s reputation

Reach out to an insurance professional at V.F. McNeil Insurance if you need help or have questions about insuring your home-based business. Request an appointment or call today at (203) 481-2684. They'll have the answers and the protection you need.



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