Home office insurance is the type of insurance that might be considered by people who work from their homes. Home office insurance is not the same as home insurance, and this is a difference some people who work from their home might fail to recognize. Some people assume that if they have home insurance they do not need to get home office insurance, since the office is located inside their home. The assumption is that the home insurance will automatically cover any issue as a result of working from within the home.
Nothing could be further from the reality, because a home office presents different conditions and requires a separate insurance coverage. An example of a liability created by a home business that would not be covered by a home insurance is a slip and fall by a client at the home in relation to the home business. Different types of businesses can be covered by home office insurance. Examples of such businesses include a home childcare, online book store, and bed and breakfast.
There are several types of options on home insurance policies that owners of home businesses may decide to purchase. Some may decide to purchase a property and equipment policy, which provides coverage for only their office equipment in case of damage or theft. Such an insurance policy may also protect the business owner in case his or her computer crashes or is attacked by a computer virus, resulting in lost work or information. It is up to the business owner to decide which type of policy to purchase.
Another type of home business insurance policy is a personal liability insurance, which protects the business owner in case there is any type of injury to customers or other people in conjunction with the home business. Some people may decide to obtain fire and flood protection to guard the home business from natural disaster. The type of home business should dictate the type of options the business owner should obtain.
For example, someone who sells objects from his or her home may decide to purchase a professional and product liability option on the home business insurance. This will protect business owners from any issue that may arise from the sale of the items or from any type of problem related to delays in shipping and the condition of the item. Also, home businesses that have employees may require workers’ compensation coverage depending on the number of employees. This protects the employer in case any of the employees sue for work-related injury.
