Home Based Business Endorsement
Many home insurance policies today have the ability to add an endorsement that gives home based businesses the coverage they need. This endorsement is designed to fit the needs of the small business entrepreneur operating a business from their home. The endorsement will be different from every insurance company, but generally the home based business endorsement should add some or all of the following coverages:
- Add Commercial General Liability.
- Add coverage for business contents including stock, tools, equipment, exterior signs and electronic data processing equipment and media.
- Coverage limits will vary from company to company and will only allow lower limits than a full commercial insurance policy.
- Extension of home coverages such as sewer-backup or earthquake coverage if purchased.
There are a lot of rules in order to apply the home based business endorsement to your home insurance policy. If you insurer has this endorsement, they will have an extensive list of businesses that are allowed on the endorsement, rules to exclude individuals who have had claims in the last few years, and there will be limits on annual gross sales. Some insurers will even decline to add this endorsement if you are doing any Online sales.
Due to the complicated nature of commercial insurance and even the home based business endorsements, it is always suggested that you talk to your broker to find out if you qualify for this endorsement.