Did you know that approximately 30 percent of Americans operate businesses right out of their homes? Every responsible business owner knows that it’s important to purchase insurance, but many people believe that their homeowners insurance policy will cover their home-based business. This is true to some extent. Home insurance often covers business property up to $2,500 in damages.

However, that small amount of coverage doesn’t offer much protection if your business requires more than a single computer. Not to mention, that coverage doesn’t offer any liability protection, for which damages can easily exceed the cost of your business’ property.

Fortunately, there are three coverage options for home-based business owners. The most suitable policy depends on the type and size of the business. Discuss the following options with your independent insurance agent.

• Endorsement/Rider: Small home-based businesses may only require a small amount of additional coverage. An endorsement (also called a rider) on your homeowners insurance policy can extend your business’ property coverage to include $5,000 in damages. However, it still does not include liability coverage.
• Home-Based Business Policy: If your home-based business is a bit larger and/or has more employees than just yourself, consider a home-based business insurance policy. This coverage often includes up to $10,000 in property damages, along with liability coverage offered in increments up to $1 million.
• Business Owner’s Policy (BOP): If you need even more coverage or if you prefer more control in customizing your business insurance, consider a business owner’s policy (also called a BOP). This bundled policy allows you to select you coverage options, making it ideal for home-based businesses that operate in more than one location, such as baking cakes at home and selling them at a storefront.

Contact your agent for more details about these valuable business insurance policies. In many cases, getting the coverage you need is cheaper than you think!

Protect your livelihood. Call Texas Insurance Agency at (713) 921-8000 for more information on Houston business insurance.