If you run a business out of your home, here’s why you should talk to your insurance agent

If you run a business out of your home, your homeowner insurance policy may not cover you adequately. Homeowner insurance policies typically do not cover any losses or liability related to a business.

In other words, if something were to happen related to your business, you would be on the hook for all damage to your property and any ensuing liability (your responsibility for damage to other people’s property or injury to other people).

Here are some questions to ask yourself if you run a business out of your home:

• Do you keep business related stock or inventory in your home?
• Do you have specialized or difficult-to-replace equipment that requires special consideration? Many renters or homeowners policies limit office equipment replacement to $2,500. Would this cover the equipment you need to keep your business running?
• Do clients or customers visit your home office? If so, are you protected against possible lawsuits if a visitor were to injure themselves?
• If your home office were destroyed by a flood or fire, how would you be compensated for the downtime?

Read more about insurance and your home business on our website. Questions? You can contact our consumer advocates online or at 1-800-562-6900.