Whether you work from home part-time or you run your entire business out of your home, you may want to consider getting a separate insurance plan to cover any potential losses.

You may wonder if you need home office insurance, or if your current homeowner’s policy covers everything you need.

Read on to learn more about this specific type of insurance and whether you need it.

It’s crucial to know that your important information and assets will safe in an emergency.

Homeowners Insurance Basics

Most insurance companies will cover your home’s structure and will pay for repairs for specific types of damages.

Yet, if you use part of your home to work or run a business, there are definitely some limitations.

Each policy is different, but most policies will offer you very limited coverage to any of your property used for business purposes.

In fact, this coverage limit is usually as low as $2,500 and could be even lower for specific items such as computers.

If you use a separate structure such as a garage or shed for your business, traditional homeowner’s insurance likely won’t cover damages.

And, when it comes to sensitive information or business records, that won’t be covered either.

For many business owners, lost revenue can be detrimental.

If you lose revenue as a result of your home becoming damaged or uninhabitable, traditional homeowner’s insurance will not reimburse you.

It’s also important to note that you won’t get liability coverage for your business under a traditional homeowner’s policy.

If there’s bodily injury or property damage, it won’t be covered unless you have a separate home office insurance policy.

What Home Office Insurance Covers

When you get a separate home office insurance policy, it will cover a variety of things for your business.

Most importantly, it should cover things like your business equipment.

Equipment refers to anything from computers and copy machines to your smartphone.

Most standard homeowner’s insurance policies have a monetary coverage limit on the contents of your home.

If you have vital business equipment that you use at home, we recommend a separate policy.

It’s important to note that your business equipment will only be covered when it’s used inside your home.

For example, if you take your laptop with you and it gets damaged on a job site, your policy may not cover it.

You may be able to add a supplemental policy to cover the things you take off-premises.

As a business owner, you should also have a form of general liability coverage.

If someone comes to your home and gets injured, this should help to cover their medical expenses and protect you from a lawsuit.

Perhaps you use your vehicle to conduct business.

If you do, you must make sure that your vehicle is also covered under a separate business policy.

And, if you sell a physical product from your home, consider opting for product liability coverage.

This insurance will protect you if customers claim the product has what’s known as “nonperformance.”

It may also cover you if someone gets injured because of using your product.

Other Important Things to Consider

While your property and your liability are both crucial to a good home office insurance policy, there are a few other components you may want to add.

These items can be optional, or they may be required depending on several factors.

If you have a large business or live in a specific jurisdiction, you may have to enroll in these other coverages.

The coverage you need may also depend on how much revenue you get from your business.

When you offer services, you must have some professional liability coverage.

This protects you and your clients and can be a real life-saver for many business owners.

Professional liability insurance protects you if a client says they’ve suffered damages through your actions as a professional.

This insurance protects your personal assets and can also help to pay for your legal defense.

Make sure you go in-depth with your agent to make sure you have the right level of coverage and limitations.

You may also need errors and omissions insurance.

This applies if you’re getting paid to give someone professional advice. If someone says that they suffered damages because of your advice, this insurance should protect you.

Disability insurance is another important aspect of home office coverage.

If you become disabled and cannot work or lose income, the policy may provide you with some compensation.

And finally, business interruption coverage is another thing to consider.

This covers any lost revenue if you have to suspend business activities due to flooding, a fire, or other forms of disasters.

Protect Yourself and Your Business

Now that you’re aware of what is covered by a home office insurance policy, it’s easy to see why it’s a crucial part of working from your home.

Whether it’s your laptop or a customer complaint, having separate insurance will keep you protected.

Talk to an insurance agent who understands the nuances of this specialized insurance.

When you enroll in a policy, you’ll have the peace of mind you need to operate your business in confidence.

For all your business insurance needs, be sure to contact us today for more information and we’ll be happy to provide you with a quote.