Do I Need to Buy Additional Coverage for My Business Equipment on My Home Insurance Policy?

You may be wondering if you need to purchase additional coverage for your business equipment on your home insurance policy. The answer is yes, you may need to buy extra protection to increase the protection your home insurance policy provides for commercial supplies. A business-from-home policy offers more comprehensive coverage for business equipment and liability than a homeowners insurance policy. These guarantees, which can also be referred to as commercial guarantees from home, vary significantly depending on the insurer.

Goods used for business purposes, such as a laptop, camera, tablet, or 3D printer, have special limits of liability under a standard home insurance policy. A business insurance agent can help you resolve these questions to determine where your business may be vulnerable and where a home-based insurance company can help you. For your supplemental insurance to take effect for your business, you must ensure that the business-related loss is covered by an existing business-from-home policy or endorsement. Some insurers will allow you to set the liability limit for your commercial property to a higher amount by adding a home-based business endorsement to your policy.

While you may think that insurance isn't necessary for your particular business, there are some businesses that may need home-based commercial insurance. These include florists, delivery services, and other businesses that require specialized equipment or vehicles. Insurers can bundle corporate property and liability coverage into a single policy, or some specialized insurers may offer both coverages and endorsements, such as income replacement and data recovery, separately. Home-based business policies are available from homeowner insurance companies and specialty insurers that sell standalone commercial home policies.

You may be able to deduct some of your home-based business insurance expenses from your taxes, depending on the type of business you have. Homeowners insurance provides financial protection for your home and personal belongings if they are damaged or stolen, and can cover your liability costs if you are sued because of an accident. To insure your business, you have three basic options, depending on the nature of your business and the insurance company you buy it from. This type of policy can offer better coverage limits for equipment and business liability compared to approving a typical home insurance policy.

The final insurance policy premium for any policy is determined by the insurance company upon application. Home insurance companies often offer endorsements that you can add to a homeowners policy for more business coverage.