There are more than 38 million home based businesses in the United States, creating a combined total of $427 billion per year. Every 12 seconds a new home based business is started, and they are as unique as those who start them. What they do have in common is the home based part. If you are one of those 38 million, it is very important you have the right protection because your normal homeowners insurance policy may not cover all of your work related assets. Make sure you know how much insurance you need for your home business in order to ensure you get a cheap homeowners insurance policy that covers you completely.
You can make sure you are covered by adding additional business insurance coverage that will replace the tools of your trade. This may include computers, printers, data storage devices, or even extra inventory you may have. Many homeowners insurance companies now understand that there are many of their customers who have a home based business. Some have begun to tailor their policies to include home business insurance coverage and can attach a home insurance rider to your plan. A rider is an optional add-on to a homeowners insurance policy. It provides additional coverage for the things you own that are worth more than the limit of your regular homeowners insurance policy.
If you already have cheap homeowners insurance you can ask your agent if they offer riders that will add home business insurance coverage. If not, shop around and take the time to look at all the options for cheap homeowners insurance that have specific additions you need. Here are some of the more common riders that are usually considered by individuals with home based business.
- Computer Equipment: This is for the purpose of increasing the limits for specialized computers used in home businesses. Virtual assistant, concierge service, and medical transcriber are among the top 25 home based businesses that could need this kind of extra coverage. Anything that relies heavily on technical equipment and internet protection is at higher risk for loss of income if something happens to that equipment.
- Business Liability Extension: This is used to increase the coverage limit for liability and medical expenses. This is especially important for anyone who operates a day care or other business where children are coming and going. Day care, massage therapist, and physical trainer are also on the top 25 home based businesses that may need this kind of extra coverage. These home bases businesses have a higher risk of someone getting injured simply because more people are coming and going, so extended liability is a wise decision.
- Business Personal Property Extension: This will allow for higher coverage of personal property that is associated with a home based business. Photography, repossession services, carpet cleaning services, bakers, and any type of craft businesses are all very popular, and all have extra property that is vital to their success. This rider can help make sure that property is protected, and that business will continue without interruption if any damage occurs.
- Business Electronic Data Rider: This is different than specialized computer equipment and involves the coverage of all electronic data, and recovery costs if the data is lost or damaged. Among the top 25 home based businesses that may need this kind of coverage are accountants, web designers and developers, debt collectors and wedding planners. All of these businesses deal with extensive amounts of personal data, and their reputations depend on having the best protection for their clients.
No matter what kind of home based business you have, make sure you understand your home insurance policy and exactly what is covered and not covered. Know the maximum amount of money it would take to repair or replace the things that are vital to your business success and make sure your policy is extended to cover those things.