Business Insurance for the Home Office

Homeowners Insurance is Not Enough for the Home Office
Do you have a home office? If so, how much is the equipment in that office worth? What would it cost to rebuild and reequip the office?

These are questions rarely considered by most people who rely on their home office. Statistics vary, but consistently surveys have found 50-60% of all home based businesses are uninsured. Add to that the numbers of people who telecommute or rely on a home office as a second office and those statistics rise to nearly 70% of households with a home office being uninsured.

The number one reason for this lack of protection is the belief by most home office owners (and unfortunately sometimes their agents) that their homeowner's policy is sufficient to cover any loss or damage to the home office. So let's focus on that myth first: a homeowners policy will not properly cover the loss or damage to a home office. A homeowners policy:

• is typically limited to $2500 for in office equipment and an even lower $250 away from the office (think, laptop);
• does not cover business liability;
• does not cover loss or damage due to cyber-crime;
• does not cover loss or damage of business records;
• and, does not cover damages caused by business interruption.