2010 July | FREE Business Insurance Quotes in Michigan, Illinois, California and Ohio

Home Based Business Insurance

July 8th, 2010 |

One recent overlooked area of Business Insurance is for home base businesses. Many business owners that start a business out of their home think that their Home Owners Insurance policy will cover them for Liability Insurance and Business Property Insurance. First of all a Personal Homeowners Insurance policy will almost always exclude General Liability for a business unless you specifically have an endorsement that extends liability to your home based business. Secondly Business Property coverage typically will only cover up to $1,000 of property used for the business. Usually this is not enough to cover your desk, chairs or computers especially if you are a contractor and have thousands of dollars worth of tools and equipment.

Some business owners argue that they don’t have any customers come in to the home and that they may not even see their customers face to face. This is a good argument but you need to ask yourself, what is your product or service? The reason you need to answer this question is because General Liability not only covers your business for Bodily Injury and Property Damage that you may cause, but Product and Completed Operations coverage. This refers to any products that you produce that may cause an injury to your client. If you provide a service such as consulting or computer repair or programming then you may need a more advanced policy that covers your Professional Services, which is called Professional Liability Insurance. This will cover you for any type of mistake in your services that causes a financial loss to your client.

So the best advise I can give you is to talk to your current Home Insurance agent. If they don’t offer business insurance for a Home Based business, give me a call and maybe we can help. We can be reached at (888) 581-0331.

Bryan Cranson is the owner of Cranson Insurance Agency in Northville, MI specializing in business insurance quotes, workers compensation insurance quotes, health insurance quotes, disability insurance quotes and life insurance quotes in Oakland County, Washtenaw County, Kent County, Cook County and Wayne County, plus the entire states of Michigan, Arizona, Kansas, California, Illinois, Indiana, New Jersey, Ohio, Oklahoma and Missouri.