Running a home-based business is a profitable venture for many Springfield residents. However, without proper insurance coverage, all your hard work can quickly be destroyed. What many home-based business owners fail to realize is that their homeowners insurance has very low limits on what business property will be covered. Many home-based businesses need commercial insurance to be fully protected.

Commercial Insurance for Home-Based Businesses in Springfield

Whether you manufacture items, visit clients, or provide consulting, your home-based business is vulnerable to losses. As many as 60% of home-based businesses in Springfield do not have adequate insurance to cover their business in case of a fire or injury claim. Homeowners insurance typically is not sufficient to fully protect a home-based business.

What types of situations would not be covered under homeowners insurance?

If your home is destroyed in a fire, your homeowners insurance will pay, within your policy limits, to rebuild and restore your personal property. However, your business property will often be limited to a much lower amount, typically $2,500. If you have inventory, computer equipment, photography equipment, or other expensive items for your business, this amount may not be enough to cover your losses.

Homeowners insurance also does not cover business liability. If a delivery man is injured bringing business goods, a client slips and falls, or your items cause injury to a customer, your homeowners insurance will not be able to help in these situations.

Do I need commercial insurance?

Determining the right level of insurance depends on your specific business. If you are working out of your Springfield home, and are conducting low-risk business activities with no clients visiting your home, you may not need commercial insurance. Instead, you may be able to add a rider onto your existing insurance to increase your property damage coverage. However, you should discuss your situation with your agent to determine if your liability and loss risks exceed what can easily be covered this way. A business policy may provide more comprehensive protection.

What types of coverage do I need?

Like brick-and-mortar businesses, there are a variety of coverages available. Your specific needs will depend on your businesses, but most Springfield businesses should consider:

• Property coverage

• Liability protection

• Product liability

• Cyber insurance

• Business interruption

• Off-site property and liability coverage

With the comprehensive coverage provided by a business owners policy, you can confidently conduct your home-based business activities knowing you are protected against a variety of risks.

Many home-based business owners are not aware that their homeowners insurance is insufficient for their business needs. By investing in commercial insurance for your home-based business, you are protecting your financial interests against property damage, liability, and other risks that may otherwise bankrupt your business.

This material is for informational purposes only.  All statements herein are subject to the provision, exclusions and conditions of the applicable policy.  For an actual description of all coverages, terms and conditions, refer to the insurance policy.