Protecting Your Home Business Ass-ets Potomac MD

As a home-based business owner, you work hard to establish your market, attract customers, and generate a profit. Don’t let the mistake of assuming that your homeowners insurance policy adequately covers your business operations, resulting in your losing all you have worked to create. Another common mistake home-based business owners make is relying on an umbrella policy to cover their business operations for both property and liability coverage.

Donald Goldberg
(301) 983-6641
12209 Lake Potomac Ter
Potomac, MD
 
Allstate Insurance Eric Heckman
(301) 365-2200
10411 Motor City Drive Suite 301
Bethesda, MD
 
Beall Insurance Agency
(301) 249-0444
1682 East Gude Drive
Rockville, MD
 
A Cassidy
(301) 948-5800
Early Cassidy & Schilling 1375 Piccard Drive Suite 375
Rockville, MD
 
Joseph T. Bussard Iii Agency
(301) 309-2444
932 Hungerford Dr
Rockville, MD
 
John T. Underwood Agency
(301) 571-0035
6903 Rockledge Dr
Bethesda, MD
 
Willis Corroon Corp
(301) 530-5050
6700 Rockledge Dr 5th Fl
Bethesda, MD
 
Early Cassidy And Schilling
(301) 948-5822
1375 Piccard Dr Ste 375
Rockville, MD
 
Allstate Insurance-Karen Holland Lerner
(703) 660-2316
1703 Belle View Blvd Apt B2
ALEXANDRIA, VA
Services
Homeowners Insurance

Insurance Brokers Co Inc
(301) 762-8890
204 Monroe Street Suite 210
Rockville, MD
 

Protecting Your Home Business Ass-ets

Provided By: 

Don’t Make the Fatal Assumption That Your Business is Covered by Your Homeowners Policy
By Richard Maturi

As a home-based business owner, you work hard to establish your market, attract customers, and generate a profit. Don’t let the mistake of assuming that your homeowners insurance policy adequately covers your business operations, resulting in your losing all you have worked to create. Another common mistake home-based business owners make is relying on an umbrella policy to cover their business operations for both property and liability coverage. Most personal umbrella policies exclude business-related activities and leave you vulnerable.

“It’s important to evaluate your insurance needs in light of your particular home-based business. Work with an insurance broker or advisor that understands your business and the unique nature of your exposure,” says Ms. Erin Plaziak, director of Product Management for Met Life Auto & Home in Rhode Island.

Begin with Property Insurance

First, you need property insurance to cover your assets such computers and other office equipment and inventory. Depending on the type of business, you may also need coverage for machinery, shop supplies and raw materials.

Most homeowners policies have a small amount of business property coverage ranging from $1,500 to $3,000. Some insurance companies offer specialty riders with higher coverage limits for certain types of home businesses. For a nominal amount, you may be able to increase your property coverage to up to $10,000 in increments of $2,500. For example, my homeowners’ policy carries a specialty rider with $5,000 on the premises property coverage and $1,000 off the premises property coverage for items in transit. Since my business also includes buying and selling rare movie star items on EBAY, I also carry a specialty collectibles insurance policy specifically for those items.

“Businesses have special issues, and the insurance agent needs to have worked with businesses like yours in order to give you the best advice. If you store inventory, carry replacement insurance on it. Make sure that computers are not excluded from coverage since replacing damaged computers can represent a large uncovered exposure,” advises Christine Moriarty, a Bristol, VT financial expert with over twenty years experience coaching small business owners.

Liability Protection
Next, you need liability insurance to cover someone getting hurt on your premises in connection with your business. For example, a delivery person, supplier, or client could slip and fall in your office or shop and leave you open to a lawsuit. Standard homeowner polices do not provide liability coverage for business-related operations, and an endorsement specialty rider may only provide a limited amount of liability coverage.

“In general, homeowner polices don’t do the job for a home-based business. The limited property coverage provided by the typical homeowner policy, ev...

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