Small Business General Liability Insurance – What You Don’t Know CAN Hurt You
The number of small businesses operating from home has exploded in recent years due to downsizing and other factors. As a result, nearly half of all US homeowners are exposed to some type of business liability risk in their home. From the moonlighting laid-off contractor to the babysitter, to the part-time consultant, most small businesses operating from home have inadequate general liability insurance protection.
A business operating from home is almost completely excluded from liability insurance coverage in standard homeowners insurance policies, yet most small business owners mistakenly think they are properly insured. The resulting lack of business liability insurance coverage leaves the in-home small business owner dangerously exposed to financial ruin from a lawsuit due to injury or property damage.
Do Your Business Insurance Homework
The key is to do your homework. Don't assume you have business liability insurance coverage under your homeowners insurance policy. The annual revenue limitation for an in-home business to be covered under a homeowners insurance policy is a paltry $2,000. Any higher, and most homeowners policies will exclude the exposure. Even when operating for a time below the $2,000 revenue ceiling, there are limitations to what types of business exposures are covered under a homeowners insurance policy, and these often include many restrictions.
Purchase a Homeowners Insurance Policy with an In-home Business Liability Insurance Extension
Purchasing an in-home business liability insurance rider is the easiest and most economical way to cover your in-home business liability exposure. Many homeowners insurance policies offer this rider for as little as $150 annually. Some in-home business insurance exposures do not qualify for the homeowners rider. In such cases a stand-alone general liability insurance policy is the solution.
Need to upgrade your homeowner’s policy to properly insure your in-home business? Contact us for a free, no-obligation business insurance review at 1-800-943-2198.
