Do you operate a business from your home? Does your insurance company know about it?
Many small businesses are run from a home. As important as it is for a company operating out of a commercial location to have insurance, it is just as important to have your home business properly insured. If you’re running a business form your home and the insurance company is not aware, you could be running the chance of having a claim denied. Home business endorsements are not costly and provide protection for your office equipment, inventory, some tools of the trade, receivables, liability, advertising injury liability, and even business interruption. You will also have coverage for equipment such as laptop computers when used off premises.
Most insurance companies will allow an insured to add an endorsement (additional option) to be added to a policy to allow an insured to operate a home business. There are several restrictions to this kind of endorsement including maximum revenue and types of business that qualify. Most companies will only allow for only one company to be run from the home and have a limit of the number of employees not including family members. The principal use of the home must be residential. If your business will involve customers or clients coming to your home for any reason, the insurance company must be aware.
So if you have a home office where you see clients, or if you have a home based business make sure that you discuss it with your insurance professional.
Mark Carruthers is a Registered Insurance Broker with Pioneer Insurance Brokers in Kitchener, Ontario. [email protected]