03 Sep 2014 Do I Need Massachusetts Business Insurance If I Work From Home?
Each member of the Berry Insurance team has taken the time to answer a question that they’re frequently asked by our clients. This is Team Berry Insurance’s Frequently Asked Questions (FAQ) blogging series – enjoy!
Do I need Massachusetts business insurance if I work from home?
Do you have a business that you operate out of your home? Does your homeowners insurance provide coverage for the business or will you need a business owners policy (BOP)? Here’s our fabulous Client Success Manager, Stacy Hearn with the answer.
So if you’ve got a home-based business, your home insurance policy may provide some limited coverage. Here are the details – the un-endorsed HO-3 insurance policy (the standard home insurance policy) typically provides coverage up to $2,500 for property used primarily for the business which is located at your residence. A limit of $500 can be enforced for business property not located at your primary residence.
What does this mean for you? Well, the computer you use for your home-based business’ bookkeeping, the desk, the chair, the printer, the fax machine, the telephone, the cell phone, the tablet, and any other business property is covered for up to $2,500 total as long as they’re at your residence. Some of these items aren’t very expensive themselves but in the event of a total loss, things add up very quickly. Let’s say that you’re traveling and in an airport when your bag is stolen. This bag contains your business laptop, cell phone, and other items used for your business. Because the loss occurred somewhere besides your residence, only $500 of coverage is provided.
We often receive calls from people that do not have a full-time business out of their home, and they think that because this is not what they do full-time that their homeowners insurance will provide coverage. Just because this isn’t your main source of income, doesn’t mean that you shouldn’t protect yourself with Massachusetts business insurance.
The definition of a “business” according to the homeowners insurance policy is “a trade, profession or occupation engaged in on a full-time, part-time or occasional basis.” As you can see, the definition is very broad. Given this definition, a hobby of selling homemade holiday items online may be considered a business so it’s important to properly protect yourself and your business property.
There are endorsements available that can be added to your homeowners insurance policy that will provide some coverage for business related activities. But not all home-based businesses can be covered by a homeowners policy. Talking with one of our Client Success Managers about purchasing a business owners policy to protect your home based business is our recommendation. Purchasing Massachusetts business insurance will ensure you’ve got the right amount of coverage to protect your home-based business and all of your business property.
*Narrated by Amanda Spittell.
For more information about insuring your home-based business, or to get some answers about your current insurance situation, please visit our virtual insurance agency at berryinsurance.com, stop our office in Franklin, Massachusetts or give us a call at (800) 941-3317.
You can also find us on all your favorite social networking sites!