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Are you the proud owner or founder of one of the estimated 59% of established businesses in the United States that operate from a home?
Though there are similarities to all businesses, wherever located, there are often concerns, considerations, and risks unique to a home-based environment. Designing proper protection that encompasses both those common and unique risks requires ongoing communication and review of your current insurance and risk management programs.
Studies show that of the over 11 million home-based businesses, nearly 60% do not have business insurance that specifically recognizes and provides coverage for home-based business risks.
When asked about the reasons for this lack of additional insurance, business owners responded:
- 40% thought they were already properly covered by their personal insurance
- 30% thought their business was too small to insure
- 20% could give no specific reason
The first assumption is demonstrably false. Standard homeowners policies are designed for personal exposures, not business. While there may be small areas or limits of coverage available for certain types of home-based businesses, the vast majority will find coverage severely limited or specifically excluded for business losses related to such common risks as theft, vehicle usage, employee injuries, or life/health/disability.
The largest potential gap in proper coverage arises from the lack of liability protection for claims arising out of business activities, whether the claim occurs in the home or elsewhere. The second assumption above is also wrong, and the third response, at a minimum, shows a dangerous lack of knowledge.
Starting a home-based business may be the first step on your road to successful entrepreneurship. Whether your business ultimately remains in your home or grows into the need for outside facilities or a relocation, your team at Garden State Central Insurance Services stands ready to be your ongoing valued partner.
Get in touch with us to review your current or future business plans, and let us help you establish a comprehensive insurance and risk management program to protect what we both hope will be your most valuable growing asset.
Sources:
69 Percent of U.S. Entrepreneurs Start Their Businesses at Home
New National Survey Finds Nearly 60 Percent of Home-Based Business Owners Without Insurance