FRIDAY, FEBRUARY 17, 2012
Internet businesses, telecommuting and freelancing are all becoming increasingly popular among workers nowadays. For obvious reasons, people are switching to an online platform, which is not only more convenient, but also very cost effective for them. One thing that is necessary to conduct operate in the comforts of your own home, however, is a home office. Note that this makes things a little complicated, especially when it comes to your home insurance.
 It's often debated by home business owners whether working from home can and should affect their home insurance premiums. Would it be for the better? Would it be for the worse? Read through the following arguments to finally dispel the misconceptions that are associated with home insurance and home-based businesses.
Home-based businesses are required to have insurance coverage if any of the following conditions are true:
- The home-based business employs a staff
- The home-based business manufactures a product
- There is a need for professional indemnity that protects (i.e.) a consultant from a customer that complains for any losses that resulted from bad advice
- The home-based business is using the house as its primary establishment and office
- The furniture and fixtures are being used in the operation of the business
- Consumables and supplies in the house are used for the business
- The home-based business uses electricity and water to operate
- Employer's liability and public liability insurance are involved
- General buildings and contents are presently uninsured
These are the things that may directly or indirectly affect the prices of your home insurance premiums. Remember that the way in which these factors will affect your insurance rates will depend on how the building contents are being used and what type of business you are operating within the premises of the house.
Business Insurance Options for Home Based Businesses
- Endorsement on your homeowners insurance. The easiest way to get insurance for a home based business is to add riders or endorsements to a homeowner’s policy. Some insurers offer an inexpensive business endorsement. However, while this may be the least expensive way to get insurance coverage, it will provide the least amount of coverage.
- Home business insurance policy. These policies are a step up and will not only cover liability, but can be constructed to cover loss of income, business expenses, equipment and data. They can also provide coverage for losses incurred by theft or fire.
- Business owner’s policy. This type of policy will offer the most comprehensive levels of coverage, including personal injury protection. This is for the home based business that has major investments or perhaps manufactures their own product. A BOP doesn't include workers' compensation insurance, which covers employee accidents on the job which is required by many states.
It is recommended that you seek the advice of an insurance provider in your area for further consultation and advice. They will be able to evaluate your situation and help you choose the right type of coverage for your home based business.
By Matt Reynolds - Google+
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