What is a home based business? Trade, profession, or occupation – full, part-time or occasional. Any other activity engaged in for money or other compensation. There are a few exceptions.
Home based businesses are one of the fastest growing segments in the small business segment. Depending on the size and type of business you may have limited to no coverage.
Most homeowners have limits for business personal property at your home, with a reduced limit for business personal property away from your home. These limits may be increased with a home based business endorsement. You will need to check with your agent for eligibility.
If you operate your home based business out of a detached garage or shed, you may have eliminated that detached building from all coverage. Again you will need to discuss this with your agent to determine if you have any coverage for the use of your detached building for a home based business.
Goods sold, but not delivered may also be excluded as that now becomes property of others. If you are working on property of others, such as a gunsmith or a refinisher that will refinish woodwork, your client’s property may also be excluded.
Do you have a home based business?