As a businessperson, you probably know that liability insurance is a must, but do you really need additional property insurance if your business is based in your own home?
Picture this – you are in business for yourself, building a lawn service company and its going really well. You’ve heard from one of your neighbors that some things have been disappearing from yards overnight so you decide it would be smart to keep your trailer of new equipment in the garage overnight, safe from thieves. Unfortunately, a spark from sharpening blades falls unnoticed into a pile of oily cleaning cloths.Your house goes up in flames! The family is ok, there is a big loss but thank heavens you have homeowners insurance.
But wait – does that homeowners insurance cover your business equipment since it was inside your home? Most likely not. Furthermore, the adjuster is asking questions about the business equipment he didn’t expect to find on site based on the terms of the policy he’s holding! Not only are you worried your business equipment is not covered, now you wonder, is your home? They said that the cause of the damage was from an undeclared activity.
Whether a home based business or a brick and mortar based business, you are going to need insurance. The assets of that business need to be covered. Your exposure to liability needs to be covered. Perhaps even the vehicle you use to conduct business needs to be covered.
To understand your business insurance needs, talk to your insurance agent. You might talk to others in your industry as well to see what kinds of policies they carry, what coverage limits and with what company. Ask them: do you feel like your agent is thorough? If you’ve had a claim, were you satisfied with how it was handled? These are good things to know. Check out the stability of your insurer as well by looking at their industry rating here. Make sure you are dealing with a properly licensed agent for Florida or your home state.