Think you are covered… think again!

Safeguarding your home office

If you have been operating a business out of your home under the assumption your home owner’s insurance has you covered, you might want to read the fine print.

Many small and home-based business owners who run their business from a home office do so thinking that the have business coverage, but when is the last time you actually read through your entire policy with your business needs in mind?

Owning your home and owning a business that operates from your home don’t always fall under the same insurance coverage, and if you run into trouble you might be left out in the cold, both physically and financially.

Some home insurance policies might cover small home offices that don’t involve a lot of clients visiting you, there but it’s a fine line between coverage and losing everything. Typical home insurance policies generally do not cover business liabilities such as:

• the products you store,
• pollution risks,
• errors and omissions ,or
• loss of business income.

Those are just a few potential powder kegs you might be storing in that home office.

Even if you already have comprehensive home insurance you need to look into commercial insurance. Don’t take risks that can be harmful to both your business and your home by ignoring these risk factors.  Insurance policies can be difficult to understand, even for simple matters and if you don’t completely understand what you are signed up for, contact your broker for a policy review.

Blog originally posted on February 20, 2012  By Durham Business Times Blogging Team