Are you a small business owner primarily operating your business from home? It probably means you have a home office setup at your private place. Have you thought of insurance coverage for your small home business? What are the assets involved in operating your small business from home? How will you compensate for the loss of such assets in case of any damage? These are some of the questions you need to consider. Your home office definitely needs an insurance coverage.
Does homeowners insurance provide coverage for home office?
Homeowners insurance policy is not meant to provide a complete coverage for your home office. It has a number of limitations or exclusions when it comes to covering for home office.
- Property coverage in an HO policy will not cover business-owned property even if it is within your residential premises, for example – outdoor sheds. It will also not cover for loss or damage to business records and data.
- Liability coverage under HO policy will not provide coverage for bodily injury or property damage that can arise from a business in which the insured is engaged. The same exclusion applies even in personal liability insurance Singapore.
Facts to understand about home office insurance coverage:
- A homeowners’ policy is not sufficient to provide for losses incurred in a small business run from home.
- However, one can apply for homeowners’ endorsements. These extend the scope of coverage by a regular HO policy.
- One can also opt for a BOP or business owners’ policy separately. This offers coverage for both commercial property and general liability bundled in a single plan.
- It is important to assess the risks associated with your home business before opting for an insurance plan.
- You should also have a proper valuation of your business when you apply for an insurance policy.