by Insurance Maze » Fri May 23, 2008 01:42 pm
As more and more people are starting a business venture from their homes, homeowner's insurance policies are getting a little more confusing.
Many home insurance policies provide endorsements for "incidental business" coverage, but most people don't realize that there is absolutely no business liability insurance coverage offered in the home policy.
Just as we separate our business from our home for income tax purposes, shouldn't we also separate our business from our home for "insurance"
purposes?
Maze
Many home insurance policies provide endorsements for "incidental business" coverage, but most people don't realize that there is absolutely no business liability insurance coverage offered in the home policy.
Just as we separate our business from our home for income tax purposes, shouldn't we also separate our business from our home for "insurance"
purposes?
Maze
Posted: Fri May 23, 2008 02:44 pm Post Subject:
I absolutely agree with your assessment. The home and business even though on the same property should be seperated. Especially with the increase in size of some of the supposed home businesses. When meeting with customers we should draw on the advantages of having a busines policy instead of homeowners. This is going to unfortunately only increase with the rising price of gas.
Posted: Tue May 27, 2008 09:21 am Post Subject: yes
yes I agree to you both on this. that would be really a good thing to consider
Posted: Mon Jun 09, 2008 11:19 pm Post Subject:
I think that many people also choose not to understand that their home owners policy does not cover business use.
In Canada there are home based business riders available on many policies and the premium is much lower than a commercial policy. Generally they are available if it truly is a small business. For example - under $200,000 revenue and only 1 employee other than the owner.
Is this the same in the USA?
Posted: Tue Jun 10, 2008 06:08 am Post Subject:
Hi, even in the US you'd need to have extra property coverage even if you are running a home-based business.
I've seen that the home owners policies in the US would either cover you for little or won't cover business at all. Yes, some people do use riders apart from the home insurance in order to cover small home-based business. This would come in handy to protect you from losses arising out of your business.
I think while applying for a rider you'd need to re-assess your business assets. you'll need to make a careful notification of the current market worth of all your business assets as well as their serial nos. That is the reason I feel its much better to get everything mentioned at your bu. records since the commencement of your bus.
Regards,
Plasmahectic
Posted: Thu Jun 19, 2008 03:28 am Post Subject:
I agree with slappy. The home and business even though on the same property should be seperated.
Posted: Sat Jul 05, 2008 01:13 am Post Subject: Business Insurance for Home Based Business
Moreover, Travelers small business underwriting would decline many applications when a business physical address is a residence.
However, personal lines insurance carriers we work with have provision C available to cover some general liability (sleep and fall) for home based business and they charge for it very little.
Posted: Sat Jul 05, 2008 08:30 am Post Subject:
State Farm covers the small and home based entrepreneurs under the Business in the Home Program at a competitive price. It offers coverages for loss of income and loss of records along with the basic liability and property coverages.
Further, it gives you the option to customize the product to meet your needs.
Posted: Sat Jul 05, 2008 09:06 am Post Subject:
I agree with slappy. The home and business even though on the same property should be seperated.
That is because the property engaged in the business activities may have different coverage requirement, as it's exposed to different kind of perils. Remember, an investment is attached to it and hence, you're required to take special care in insuring it.
Homeowners insurance falls short of addressing all the special needs of the home based business. the HO policy will not cover you for the loss of income, machinery and inventories. Also, the homeowner insurer may deny a claim if the residential part suffers damages from the home based business unit. The home based business insurance is a specially designed policy that covers the perils that the operation may suffer.
Some states have mandated business insurances for the entrepreneurs operating form home. You're required to have the policy in order to obtain the operation license in these states.
Posted: Tue Jul 22, 2008 06:37 am Post Subject:
MY friend has just gone to India from US and he wants to know the policies regarding home business insurances in India...
Can anyone of you here help him..
Posted: Thu Aug 14, 2008 03:06 am Post Subject:
Interesting discussion. This is making me think.
I operate my business out of my home and I haven't looked into coverage specifically for my business.
I have learned something today.
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