Home-based business owners choose to run their business from a residence instead of a designated office space. A home-based business can be run from an apartment, mobile home, garage, condo, house or a separate dwelling in the back yard. Most home-based business owners believe that their current homeowner or renter insurance covers damage to their business property; and in most cases it does, but there are some very important business related items that a standard insurance won’t cover.
Why Isn't Homeowner’s Insurance Enough?
As a home based business owner, you may not think much about adding additional coverage onto your existing homeowner’s policy, but keep in mind that a general homeowner’s policy doesn't cover everything in a home. Homeowner’s policies generally cover structural damage or contents damage caused by structural damage. However, the policy generally does not cover damage to contents alone. For that you may have to add additional coverage called contents insurance.
Contents insurance is an additional policy that covers the contents in your home. In most cases, contents insurance covers for damages that are not covered by your content’s warranty. Warranties generally cover electronics and appliances for damage caused by defects or mechanical breakdowns. However, they do not cover the damage caused by you or by natural disasters.
Home-based Business Insurance
Home-based Michigan business insurance covers your business contents as well as loss of income. Unlike a general contents insurance policy which would only cover the damaged contents, business coverage has a higher dollar amount of coverage and it covers you for loss of income due to damages to your business or contents. Home-based business owners generally don't have home-based business policies, because they falsely believe that their homeowners insurance will cover their home-based business; however, it is important to add home-based business coverage to help financially while getting your business back on track after a disaster.
Commercial Auto Coverage
If you have a vehicle that you use for business, you will need commercial auto insurance. General auto insurance policies don't cover vehicles used to haul goods or people. If your business has more than one driver or you haul goods, it may be best to get a commercial auto insurance policy to make sure that you're at it quickly covered in the event of theft or an accident. This type of policy has a higher dollar amount of coverage than a general auto insurance policy so it costs a bit more.
If you’re just starting your home-based business or you are a current home-based business owner who needs more information about the above policies, give Insurance Planning Service a call at 800-220-5582 and we’d be more than happy to assist you.