76.2 F
The Villages
Friday, August 12, 2022

Insurance is essential for home-based businesses


Ask SCOREInsurance is Essential for Home-Based Businesses.

More than 43 million Americans operate full- or part-time businesses from their homes, and more are on the way as technology gradually reduces the need for and/or size of separate facilities for many types of enterprises. Along with shedding leases, commuting, and other costs of “conventional” business operations, many home-based entrepreneurs also assume their homeowner’s insurance policy provides the protection they need.

This is not always true. According to the Independent Insurance Agents and Brokers of America, Inc., homeowner’s policies were never intended to cover business exposures. Typically, these policies limit coverage for items used in a business (e.g., computers, fax machines, filing cabinets, tools and inventory, etc.) to $2,500 in your home and $250 away from home.

What’s more, a homeowners policy provides no liability insurance for your home-based business, nor does it provide business interruption protection in the event that fire, major storm, or other situation causes your business to cease operations temporarily or permanently.

Fortunately, home-based businesses have several options for bridging insurance gaps. They include:

  • Incidental Business Endorsement. Depending on your business, you may be able to attach this endorsement to your existing homeowner’s policy to cover on-premises structures or equipment that you use for business. This endorsement can also be tailored to include business liability.
  • Business Owners Package Policy. If your in-home business does not qualify for an incidental business endorsement, you can purchase coverage under a business owner’s package policy (BOP), which provides property and liability coverage.
  • In-Home Business Owners Policy. Some insurance companies offer policies that combine homeowners and business owner’s coverage into a single policy that provides both business coverage (business liability, replacement of lost income) and homeowner’s coverage for fire, theft, and personal liability. These policies eliminate gaps and duplications in coverage, and the rates reflect the in-home status of your business.
  • Vehicle Policy. If you have a personal vehicle that’s sometimes used for business or if your in-home business is the owner of one or more vehicles, you may need to purchase a Personal or Commercial Automobile Policy.

An independent insurance agent can help identify risk areas and provide guidance for finding the appropriate coverage to protect your business, as well as you and your family. More information is available at www.independentagent.com or www.TrustedChoice.com.

Another great source for small business expertise is SCORE “For the Life of Your Business.” SCORE is a non-profit organization of more than 12,000 volunteers who provide free, confidential business mentoring and training workshops to small business owners.

To learn more about the local chapter of SCORE, visit www.MidFlorida.score.org.


More Headlines
Stories in and around The Villages, Florida

The Villages, Florida

Letters to the Editor
Opinions submitted by residents in and around The Villages

Windmill and water tower weren’t built to withstand Florida weather

A Village of Dunedin resident writes that it is pretty obvious that the windmill and water tower at Brownwood were constructed with materials that never had a chance of surviving Florida weather. Read his Letter to the Editor.

Spend the money on amenities not windmill and water tower

In a Letter to the Editor, a couple from the Leyton Villas writes that the money to be spent on the replacement of the windmill and water tower at Brownwood would be better spent on improved amenities.

Morse family can pay for windmill and water tower

A Village of Monarch Grove resident, in Letter to the Editor, contends that the Morse family can pay for the replacement of the windmill and water tower at Brownwood Paddock Square.

Colors add a breath of fresh air

A resident of the Historic Side of The Villages says a home with controversial colors is actually a breath of fresh air. Read her Letter to the Editor.

President Trump’s home invasion

A Village of Buttonwood resident sounds off on the FBI raid at the home of former President Trump. Read his Letter to the Editor.

The Villages, Florida