3 Types of Insurance You May Think You Have But Don’t – Part 3

The following is an excerpt taken from the article, “3 Types of Insurance You May Think You Have But Don’t”. For more information please visit www.sba.gov.

Home-based businesses

Just because you have a good homeowner’s policy doesn’t automatically give you the protection you need for your home-based business. If a business client is injured in a fall or the inventory you store in your basement is destroyed by a fire, your hhome-businesslshutterstock_111972227omeowner’s policy probably won’t provide protection. There are two ways to remedy this:

  • Add a rider to your homeowner’s policy to cover your home-based business. This option is useful if you have few business visitors and not too much business property to protect.
  • Obtain a separate business owner’s policy (BOP). This option is preferable if clients and customers regularly visit your home and/or if you have expensive business property (costly equipment and/or inventory on the premises).


Former Defense Secretary Donald Rumsfeld said, “there are …unknown unknowns — the ones we don’t know we don’t know.” You may be unaware of the type of coverage your business should have. Talk with your insurance agent to determine what risks your business faces and learn about additional coverage you may want or need.

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