Do you have a business in your home?

According to recent research, at least 20-40% of all homeowners have some kind of business activity. Failure to tell your insurance agent can be catastrophic…both for them and you.

When was the last time your insurance agent asked you if you conducted business out of your home or, in fact, ever did any kind of work at home? Any baby-sitting, grass mowing or newspaper delivery? Any home cleaning at the homes of others? Any work at home for your full-time employer?

According to research, at least 40 million people work—full or part time—at home.  An insurance industry study several years ago indicated that income-producing businesses are being operated from almost 20% of American Homeowners...and this doesn't include people who just take work home at night. According to a readership survey conducted by Home Office Computing magazine, 82% of their readers run full- or part-time businesses from their home 79% have done so for over 2 years, and many of them have 4 or more employees.

But you are not worried you have Homeowners insurance. But is it possible that the Homeowners policy doesn’t cover all of your possible exposures? The answer would definitely be YES.

The following are just a few of the gaps in your insurance program if you operate an in-Homeowners business or, in some cases, even work at Homeowners.

• The definition of "insured" in both the Homeowners and Personal Auto policies does not include corporations, nonresident "partners", nor employees.
• The Homeowners policy provides no property coverage for non-dwelling structures used for business.
• The Homeowners policy provides, for all practical purposes, NO liability or medical payments coverage for any business activities.
• The Homeowners policy provides minimal coverage for business personal property
• The Homeowners policy provides no business income coverage.
• Many in-home businesses are of a professional, service nature, the Homeowners policy provides no professional liability or D&O coverage.
• The Homeowners and Personal Auto policies provide no coverage for persons eligible to receive workers comp benefits—e.g., the importer referenced earlier.
• Autos owned by the business may not be eligible for a Personal Auto policy, and problems may arise on currently insured autos if ownership is transferred to the business.
• Personal umbrellas may cover some business exposures, but not often.

Clearly, many, if not most, persons with in-Home businesses may need commercial coverages.

The bottom line is that you may have uninsured exposures, then take the appropriate action, call us today for a complete risk management review of all of your personal and business exposures. 

Learn more about your personal homeowners insurance options today.