You must tell your broker about any home based business.
If you run a business from home, you need a Home Based Business insurance package added to your personal policy.
Your personal business insurance policy has limited coverage for the items you use to operate your business. A Home Based Business package protects your business assets. The Home Based Business package also provides necessary and affordable liability coverage that is not included in your personal policy.
Every property insurance policy has exclusions and they are found in your policy wording often titled Loss or Damage Not Insured. We would like to point out the following exclusion:
We do not insure buildings, units or detached private structures used in whole or in part for business or farming purposes unless declared on the “Declaration Page”.
Examples of businesses that are likely covered are:
- Book keeping/Accounting
- Cosmetic Sales (Avon, Mary Kay)
- Jewelry Sales
- Catalog Sales (Clothing)
- Crafts
- Kitchen Supplies (Tupperware)
As always your Lloyd Sadd Insurance Broker is here to help you understand how to insure your home and your home based business. Let your broker know today to avoid having limited or no coverage in the event of a loss.