Covering the risks of home-based businesses

The self-employed who rely on home insurance for business exposures are risking their personal assets if they have a claim.

When we finally put COVID-19 behind us, it’s expected more people than ever before will be working from home. Some will be small businesses that carved out a home office and began working remotely when the lockdowns were announced in March. Others will result from a probable surge in home-based startups.

Those who make work-at-home a permanent part of their lives will likely feel more freedom than they do at a corporate office, but they should know that their homeowners insurance will, in most cases, fall short of covering all of the potential business risks they face and require separate coverage.

Homeowners’ policies often exclude or only protect a minimum amount of business equipment coverage, leaving a home-based business liable if anything were to happen, including catastrophes and natural disasters. The self-employed who rely on their homeowner’s policy are risking their personal assets if they have a claim.

Read the full article, written by Steve Tombarelli, Senior Vice President of Business Expansion & Innovation at SIAA, published on propertycasualty360.com.