While many business owners that operate out of their homes rely on their homeowners insurance for coverage, this is oftentimes not adequate coverage. Most standard homeowners insurance policies will only cover up to $2,500 in damages for your home-based business, which may not be enough to cover computer and other equipment. What can you do?
There are three main options for owners of home-based businesses and the option you choose depends on the type and scope of your business. Let's take a closer look at each option.
If your home-based business is run by the one and only you, it's likely that your operation costs are not high. A computer, a printer, some files and you're good to go. If this sounds like your business, than you may only need a rider (also called an endorsement) on your homeowners insurance policy. This extends your property coverage to $5,000, but does not include liability coverage.
A home-based business with a larger scope may require an in-home business insurance policy, which extends property coverage to $10,000 and includes liability coverage, sold in increments up to $1 million. This business policy may even cover events such as business interruption or theft of funds, which could otherwise cause irreparable damage to your business.
If your home-based business operates out of more than one location (such as your home and a storefront), you should consider a business owner's policy, known as a BOP. This policy provides higher limits for both property and liability, along with additional options you can choose to add to your policy for more comprehensive coverage.
Discuss your options with an independent agent like us for a thorough evaluation of your business' unique needs. We will shop for the appropriate coverage in order to find the best match of policy and price.
Protect your livelihood today. Call ECI Insurance Agency at (405) 373-2977 for more information on Oklahoma City business insurance.