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Understanding Insurance Needs for Home-Based Businesses
In recent years, the line between work and home has blurred for many people as they increasingly work full—or part-time from home or run various home-based businesses. These changes necessitate recognizing that the typical home insurance policy offers limited coverage for business assets, so many home-based businesses need commercial insurance coverage. If you live in the West Bloomfield, MI, area, consider allowing the Agency Advantage Insurance team to create your home and business insurance plan.
Home Insurance and Working from Home
Most home-based businesses rely on office electronics, furniture, tools, and supplies. Others carry inventories or other assets. As the value of your business grows, the protection provided by commercial insurance becomes increasingly important.
Home insurance policies protect personal assets; most offer only $2,500 in business asset coverage. Without some form of commercial insurance, business assets exceeding the $2,500 limit are effectively uninsured.
Small home businesses with few assets can supplement their home policy with a business property endorsement, which commonly doubles the coverage to $5,000. Businesses with more assets should acquire a separate commercial policy and may also need professional or business liability insurance.
In-home business insurance meets the needs of many companies with less than $250,000 in revenue. Policies can include property, liability, and other commercial insurance elements businesses need.
A Business Owner’s Policy (BOP) applies to businesses with $250,000 or more in revenue. It combines the core elements of sophisticated commercial insurance policies and can include Workers’ Compensation and liability coverage.
Working with Agency Advantage Insurance
The Agency Advantage Insurance team serves homeowners and businesses in the West Bloomfield, MI, area. Let us create an insurance plan for you by calling (248) 855-9090 to schedule an appointment or stopping by the office today.
