Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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At home business insurance

As the numbers of people who begin at home businesses grows, these people will need to obtain at home business insurance. Where at home business owners will purchase this type of policy depends on the type of plan would best suit their needs. They have three different options:

1. They may augment their homeowners insurance,
2. They may purchase an insurance policy specifically for the at home business or
3. They may purchase the business owner’s policy (BOP) that small and medium-sized businesses are offered by insurance companies to reduce the price of business insurance.

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Homeowner’s Insurance Policies

The typical homeowner’s insurance policy may turn out to be inadequate for insuring at home businesses. The most for which at home business owners may be compensated in the event of loss to the business is usually $2,500 through a homeowner’s insurance policy. If the mishap occurs off of the home’s premises, the amount of compensation drops to $250.

Sometimes, people who operate a business inside their homes also need to travel to other places of business and if their homeowners’ policies will only compensate them up to $250, they may experience a serious deficit.

They can purchase supplemental coverage for their homeowners’ policies that will increase the benefits for business equipment from $2,500 to $5,000. In order to purchase this policy, the at home business must not have revenue over $5,000 for the year.

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At Home Business Insurance

If a business receives proceeds that exceed $5,000, the business owners’ other option is an at home business insurance policy. Insurance companies give at home business owners the option to purchase liability coverage for as much as $300,000 if this will suit their needs. At home business owners can also purchase as much as $1,000,000 if their businesses warrant that much coverage.

The home-based business insurance policy has been created to cover the unique needs of the at home business. For example, the business would experience an interruption in its operations if the house were to be determined to be uninhabitable while it’s being repaired after an earthquake. The interruption would cause a loss of revenue, and the home-based business insurance policy would compensate the business owners for it.

Business Owner’s Policy (BOP)

The BOP is a policy that bundles several types of business insurance into one that is generally offered to small and medium-sized businesses, but may also fit the needs of at home businesses. The at home business that

Business Owner’s Policy

particularly benefits from this type of policy is one that manufactures its products outside of the home.

To qualify to purchase the BOP, at home businesses may attain revenue up to $3,000,000 per year. The parts of the business that will be covered under a BOP policy are:

• The place where business operations are performed,
• The equipment owned by the business used to operate it such as computers,
• Business interruption,
• The damages done to rented or leased equipment,
• Loss of revenue,
• Legal defense if sued by a customer and
• Payment for any court judgments.

Under the BOP policy, at home business owners can bundle their property insurance, casualty insurance, liability insurance, business interruption insurance, crime insurance and vehicle insurance into one. These types of policies are very easy for small business owners to manage because they all remain in one place under one premium.

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Who Can Benefit From At Home Business Insurance

Sometimes, people consider their at home businesses to be a hobby. They aren’t making millions of dollars; they are just doing what they love. The at home business may also be only a part-time venture. Even though the sales may only amount to hundreds or a few thousands of dollars per year, these people have reason to protect themselves with business insurance.

For example, the equipment that sculptors use may add up to a lot of money if they ever had to replace it all at once because it was damaged in a fire. Their homeowner’s insurance policies alone may not cover the entire amount.

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It also may be the case that a visitor to the house may have an accident that is related to the business. These clients may sue the business owner and the homeowner’s policy may not apply under these circumstances. Business

home business liability insurance

owners wouldn’t have to worry about this if they have a business liability policy that covers bodily injuries to these clients.

At home business owners are also capable of having accidents when they are on other people’s property. These business owners may cause a piece of equipment to break due to their negligence. If they have business insurance, they will be able to pay to have the equipment replaced or repaired.

Where to Purchase At Home Business Insurance

As business owners seek to purchase their homeowner’s insurance from an insurance company, they can also purchase their supplemental coverage for their businesses if they meet the criteria. If they are going to purchase at home business insurance or the BOP insurance, they can purchase it from a private insurance company that sells business insurance.

As each insurance company will have different levels of coverage, they will also charge different companies a different price for their home-based business insurance. But just because one insurance company will quote a high price for one company, doesn’t mean that they all will do the same thing.

Do Business with Several Insurance Companies

It’s for the reason described above that home-based business owners need to go to several insurance companies to obtain a quote from each of them. The easiest way to do this is to retain the services of this comparison website. At home business owners will only need to enter their information one time and the comparison website will take care of the rest.

At home business owners have a lot of work they need to do each day; they don’t have time to spend seeking individual quotes from several insurance companies online. If they let this comparison website do all of this work for them, they will have several quotes in seconds that they can begin to compare immediately.

Start and end your search for home business insurance today by entering your zip code below!