Over the past five years, it’s estimated that nearly 70% of new startup businesses are home-based. The focus has shifted, and the primary reason for starting a new business is no longer to create a family legacy, but to enjoy the freedom and flexibility that come with being your own boss. The money saved on renting or buying a building can be invested in promoting and marketing the business. At McCluskey Insurance Services LLC in Cincinnati, OH, we aim to help business owners thrive through the judicious use of commercial insurance.
Does Home Insurance Protect Your Home Business?
The answer is both yes and no. Many home insurance policies have a limit on the amount they will pay for damage to a home-based business. Depending on the type of business you have, this could be significantly less than the actual value of your office equipment, inventory, documents, and machinery. Commercial property insurance covers both structure and property. If your business has physical structures and materials, commercial insurance will cover them all.
The most significant risk to your home business from your home insurance is liability. Your home insurance will not protect you from injuries incurred by someone visiting you for business. It will not protect you from someone suing you over a product or service that you provided to them. This can put your assets at serious risk. Getting sued can not only deplete your assets, but it could also cause your business to fail.
If you have employees, you are required to provide workers’ compensation insurance, a commercial insurance product that is not typically covered by home insurance.
Reach Out to Us
Contact McCluskey Insurance Services LLC in Cincinnati, OH, to benefit from our years of experience as independent insurance agents. Give us a call or reach out through our website.
