Orlando, FL -- (SBWIRE) -- 02/14/2013 -- Most home-based businesses do not have enough insurance.
Many Florida home-based businesses do not have enough insurance to cover them should something go wrong. Interestingly enough, the reason for them being underinsured has to do with a belief that their homeowner’s policy covers their business. But that is not always true.
It should be noted that a typical homeowner’s policy, in most cases, covers up to $2,500 in damages on the premises of the business and $250.00 in damages off the premises. This is not enough coverage, and any other liability that arises relating to a home business is not covered.
There are a few common choices when business insurance in needed for a home business such as a business owner’s package, an in-home business policy or endorsements to the main homeowner’s package policy.
The reasonably priced business owner’s package is a simple product designed for small businesses. It is ideally suited to a company that has more than one location, or makes products outside of their workplace. It has the ability to cover a business that may be as large as 25,000 square feet, with gross sales of up to $3 million, and comes with special features that are not in general business policies. The policy still covers business property, equipment, loss of income, extra expenses and liability, but on a much wider scale.
The in-home policy may insure a business property for $10,000 and general liability is included. An owner may buy from $300,000 to $1 million in liability, and if a home business is sustains damage, the policy may cover expenses such as payroll and lost income for up to a year. Business owners may also look into extra coverage for loss of use of equipment, accounts receivable and valuable documents.
Depending on what kind of business is on the premises, a homeowner may get an endorsement on their homeowner’s policy with higher limits or coverage for specific risks or perils. Again, depending on what the circumstances are, this may cost the homeowner very little. It is best to ask for specifics when contemplating whether an endorsement would be sufficient. Bear in mind that endorsements are usually only available for a home-based company that sells $5,000 or less in a year.
Floridainsurance.com released a statement saying, “These insurance options are not always available in all areas and coverage limits and terms may vary. It’s important to talk to your licensed insurance agent about your unique situation and terms associated with your exact policy.”
To learn more about Florida home insurance for home-based business owners call 1.888.525.2210 visit http://www.floridainsurance.com
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