Operating your own business can be exciting, but at the same time, you will have a lot of challenges to face. One of the common challenges that tends to be overlooked quite a bit is the insurance aspect of a home-based business. That is often because so many people think that since they are running the business out of their home it will be covered by the same insurance policy they are using currently to cover anything in their home. With that being the case, you should know what you need to ask of your insurance agent if your plan does cover a home-based business, but also know what kind of plan you may need to get if you want to have a homeowner’s plan cover your business as well. So now onto the simple questions and answers to help you learn more.
Does My Homeowners Plan Cover A Home Business
In most cases, the answer will be a no. That is because the homeowner’s insurance plan is going to cover the basics of your home. This will include damage from a fire, flood, break-ins and the typical things that will happen to visitors.
The injuries to visitors would be people that are stopping by for a visit like an aunt, uncle, friends, or other family members. This will make it easier for you to have medical bills paid for those individuals. However, it is important to note that most of the plans for medical payment will not cover the people who are stopping by and slip on the driveway or fall on a step and they are at the house to buy a product. The one exception to this is most plans will cover someone who gets injured if they stopped to buy a one-time item, like if you were selling a car or truck in the local newspaper and not selling items on a regular basis.
What Should You Ask Your Insurance Agent
While you may still have some questions, it is important that you know what specific questions you should ask your insurance agent and know what they may ask you. This will make it quite a bit easier for you to get the answers you need about the you are going to be getting.
The first question to ask if your plan does cover a home-based business is what type of coverage it has. Some of these plans will only cover your product liability, which is fine if you are only selling items online and not going to have visitors stop by your business. Other plans will cover all aspects that you are going to have available for a business and this could be something that you need to have to help guarantee your business is going to be properly protected.
A second question you should be asking is how many instances you are allowed to have for the plans. Sometimes you will find out that you can only file a claim once and then the insurance is canceled. At other times you may find that you have several instances that can be filed before you start to have any issues with the coverage being canceled or giving you a notice that your plan has reached the maximum number of allowances.
The amount of coverage is something else you should be considering as well. Since this is off of your homeowners plans they will typically only allow for twenty-five thousand in coverage amounts. While this may seem like it is quite a bit, you have to remember you are running a business and it could easily run through all the coverage in a single instance.
When you are explaining the needs to your insurance agent, they will most likely ask you what you are going to be selling. This way the insurance agents can put the information on the plan. It is very important that you be honest about everything you are selling, or you could easily lose your insurance coverage and this would not help you out because then you would have a harder time in getting the coverage you need in the future.
If You Need A New Plan
Sometimes you will notice that you are going to need to get a new insurance plan to provide the coverage you need. This is often the problem that some people will have because the coverage does not help them out at all. Since this is the case you should know about what to find in some of the insurance policies you may have to get for your plan and one of those is going to be one that will cover everything you have.
The umbrella type of plan could be a great option if you are going to be running a home-based business. This is the type that will cover everything that you have to deal with in the way of the business and your home. This can even include any of the animals you have in your home or on the property as well. So this will make it easier for everyone to have the proper care they need to protect their home and business at the same time.
The other type you may be able to get for the homeowner’s plan will be what is called a business rider. This is an addon to your homeowner’s plan, but it will have quite a requirements you are going to need to meet. So this is definitely an option for a lot of people if they are able to qualify for them.
Owning a business is very exciting. However, at the same time, you will find that it can mean making some changes or asking questions about your homeowner’s insurance plan. By knowing about these questions to ask and potential changes it will be easy for you to find out if your homeowners insurance will cover your home-based business that you are planning on opening.