Common coverage for home-based businesses insurance in California includes personal business property, professional liability, business income, personal and advertising injury, loss of business data, crime and theft, workers’ compensation and auto coverage. Depending on the type of home-based business you have, not all coverage applies, and other coverage options may be available.
Coverage Options
Based on your business needs, you have three basic coverage options to choose from, depending on your level of risk:
- Homeowners Policy Endorsement. This provides the least amount of coverage and, therefore, is not ideal for most home-based businesses (depending on the level of risk). While it may provide enough coverage for a freelance writer with one computer and no business foot traffic, it’s not enough for someone who employs others, has clients visiting his or her home or has valuable business equipment and/or inventory.
- In-home Business Policy. More comprehensive than a homeowners policy endorsement, in-home business coverage is a stand-alone policy that provides higher amounts of coverage for business equipment and liability.
- Business Owners Policy, or BOP. A BOP bundles property and liability insurance into one policy. Created specifically for the small- to mid-sized business, a BOP covers your business property and equipment, loss of income, extra expense and liability. It is the most comprehensive property and liability option. It does not include workers’ compensation, health or disability insurance, which are available as separate policies.
What’s Your Risk?
While most homeowners insurance policies do cover a limited amount of business equipment—computers, copiers, and printers, to name a few—it’s likely that what you own is worth more than your policy’s limits. Also, your homeowner’s liability insurance probably won’t cover any injuries that may occur to the employees or clients that you have on your premises. What’s a home-based businessperson to do?
Business Insurance California is Here to Help
If you conduct business in your home, insuring your business properly is part of a solid risk management plan. Business Insurance California understands the small business owner’s personal and business needs. We can help you tailor coverage that’s as unique as the products and services you provide. Contact us today at (844) 234-5600 to learn more about how we can help you ensure your livelihood.