Home-based businesses and residential living often blur together when you work from home. This overlap can extend to your insurance policies as well. It’s essential to understand how your home insurance policy in Bluffdale, UT, interacts with your business operations.
Minimal Coverage for Business Assets
Many home insurance policies do not provide sufficient coverage for business-related assets. They typically offer minimal protection for inventory and equipment, which could leave you vulnerable in the event of a natural disaster or other emergencies. To avoid financial setbacks, consult a representative at a company like United Insurance Services Inc. to ensure your coverage is adequate for your business needs.
Structural Damage Coverage
Home insurance policies generally cover structural damage caused by events like fires, windstorms, or tornadoes. Operating a business from home is unlikely to affect this part of your policy, as it remains consistent with standard homeowners’ insurance coverage.
Liability Exclusions
Most home insurance policies exclude liability lawsuits related to your business, as these are typically covered by commercial insurance. For example, if a delivery driver slips on your sidewalk while delivering a package for your business, your homeowners’ policy likely won’t cover the claim.
Additionally, lawsuits stemming from negligence or malpractice are excluded. If you work in professions like law or accounting and face a lawsuit, your homeowners’ policy won’t provide coverage. In such cases, commercial or malpractice insurance is necessary to handle these claims.
Importance of Transparency
It’s crucial to be upfront with your insurance company about your home-based business. Failing to disclose your business operations can result in denied claims or a refusal to provide coverage.
Agents at United Insurance Services Inc. can help you explore your coverage options and ensure your business is adequately protected. Contact us today! We’re currently serving the Bluffdale, UT, area.