Home-Based Businesses

home-workDear Friends & Neighbors,

Recent studies indicate that there are more than 11 million home-based businesses in the U.S. and that figure is rising. Unfortunately, many of these home-based entrepreneurs assume that their homeowner’s policy provides coverage for their business exposures. This is not the case.

According to the Small Business Administration, approximately 60% of home-based businesses involve service-related operations; 16% are in construction, 14% in the retail trade; and the remaining includes transportation, communications, wholesale trade, manufacturing, finance as well as other industries. A survey conducted by the Independent Insurance Agents & Brokers of America indicated that 58% of the owners of home-based businesses have not purchased any additional insurance for their business operations.What’s even more disturbing is the fact that it revealed 87% of those business owners did not realize additional insurance was needed for the business.

The proper coverage for some home-based businesses may be provided by appropriate homeowners endorsements, of which there are several. However, these endorsements are often limited and may not adequately address the exposures of the business. Several insurance carriers have developed a Home Business policy.

If you are in doubt about your exposure to loss, give us a call. We will be happy to review your homeowner’s coverage in light of the business you are conducting. If endorsements are in order, we will advise you and if you need additional coverage will will also point that out. No cost to you for the review.



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