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Home Based Business Insurance

What you need to do to protect your homebased business
June 1, 2006

If you're starting a business from home, don't assume your homeowners (or renters) coverage is sufficient to cover any mishaps you might have. Properly insuring your homebased business is crucial to protecting both your business and your home.

Beth Parquette, president of Parquette-Clement Insurance Services, an insurance agency in North Port, Florida, says, "A homebased business needs all the same insurance [as] a retail space, a warehouse or any place of business." While most homeowners policies cover a limited amount of business equipment, she says, it's likely that what you have is worth more than your policy's limits.

So what kind of coverage do you need? Parquette says to make sure the following are covered:

Choose an agent who understands your type of business and has access to a variety of homebased-business insurance products. Make this process a startup priority. Parquette warns, "If your carrier doesn't know you have a homebased business, in the event of a claim, there's a good chance your homeowners policy could be canceled."