Thinking of starting a work-from-home business? Our friends at PEMCO spoke with a local news outlet about how typical personal property policies might not cover all your needs:
A lot of small businesses are now home-based, but traditional homeowners insurance may not keep up with the ‘work at home’ lifestyle.
The experts at PEMCO Insurance said you may need to look into more coverage.
“Homeowners insurance normally doesn’t protect if a customer is at your home and gets injured or if they claim that your product makes them sick or infringes on a patent or maybe your advertising defames them,” said Allison Leepe, the Social Impact Manager at PEMCO Insurance.
PEMCO provided a list of examples of people who may need extra insurance:
- Craftsperson who uses special equipment and supplies
- Independent marketing representative who stores inventory at home
- Tutor whose students come to your home
- Repair person who takes possession of customers’ property
- Inventor who makes and sells a product
- Traveling worker who uses a car to transport business items
When trying to decide what kind of insurance you need, Leepe said it’s best to ask your insurance agent or broker.
“You might discover that you need a true business owners policy which is often referred to as BOP,” said Leep. “It’s that kind of coverage and policy that is going to give you protection for legal liability. If someone is going to sue you, we hope that never happens, but if it does that really could save your business and maybe even your financial life.”
Whoever you talk to can help identify the risks you might face with a business at home.