The past year has undoubtedly been challenging for a lot of people. Many Americans were put in situations that left them without work. Due to this, it’s not surprising that many Americans also decided to start home-based businesses of their own. And with any business endeavor, there are risks involved. Finding the right home-based business insurance will protect the goals you wish to achieve.

Here at Alexander Insurance Agency in St. Charles, MO, we’re here to help you understand how home-based business insurance works.

First, let’s cover what makes a standard home insurance policy different from home-based business insurance.

  1. Standard homeowner’s insurance only covers $2,500 of business property.
  1. This standard homeowner’s insurance also limits other possible necessities for your new business. If your home office is in a detached building next to your house – like a shed or detached garage, most policies will exclude these structures. Any business property that leaves your home will not be covered while away from your home residence.

Types of Home-Based Coverage

Okay, now you’re probably wondering, are there different types of home-based business insurance? Yes. Just like your standard policy, there are a variety of options to choose from with additional coverages. Our team will gladly help you determine the right one for you. Now let’s explain the differences.

  • Accounts Receivable Coverage: this policy will reimburse you for amounts you can’t collect from your customers if you lose your accounts receivable records.
  • Business Liability Coverage: if your business runs into legal trouble, such as being sued, this provides coverage for legal representation and settlements.
  • Business Property Coverage: this covers damage or loss of business property and equipment.
  • Electronic Data Processing Equipment Coverage: this covers computers, phones, and servers.
  • Loss of Income Coverage: this will cover any income loss and can provide payroll costs if needed.

Who Needs Home-Based Insurance?

If you are not sure if your business needs home-based coverage, it is best to give us a call and speak to one of our agents. We will make sure we answer all of your questions and set you up with all of the necessary coverage. Here are a few examples of businesses that may need this type of coverage.

  • Photographer
  • Interior decorator
  • Web designer
  • Caterers

We understand the past year has looked a little different for everyone. But know that we are here to help make this year a great one by helping you get the right coverage you need. When it comes to insurance, you can trust that we have your best interest at heart. We strive to provide a positive experience for every client getting them what they need at an affordable price. Here at Alexander Insurance Agency, we’re the experts you’re looking for.