If you have a business in your home...

You should be aware that most basic homeowners policies will NOT provide coverage for property claims or liability situations directly related to any business activities.

For example, a basic homeowners policy will NOT cover you for:

• Liability–People who may injure themselves in the course of doing business with you, on your own property or elsewhere.
• Inventory Loss—Products, samples or others items that are damaged, stolen or otherwise harmed.
• Equipment Loss—Computers and other equipment, furniture and electronic data that is damaged, stolen or otherwise harmed.

However, most homeowners policies do have a home business endorsement that—depending upon the type of business you are conducting—may be added to your policy. You are probably a good candidate for one of these policies if:

• You are, for the most part, a one-person operation
• You have minimal “traffic” in and out
• Your work area consumes only a small portion of your home’s overall space
• Your business does not have a separate entrance
• Your business equipment is valued at less than $20,000

Home business insurance policies available
There are three different types of home-business insurance that can be added to your homeowners policy:

• Business Pursuits Liability Coverage
  This provides the liability coverage for business activities that is normally excluded in your homeowners policy
• Incidental Occupancy Coverage
  This provides coverage for a specific area in your home that is designated as your office, when your primary office is in another location. It protects you against any losses to your furnishings, equipment, inventory electronic data and the like.
• Home Work/Business Endorsement
  This provides a broader level of protection–including liability insurance–and covers inventory, computers, office equipment, electronic data, etc.

The cost to acquire these coverages ranges from as little as $10 to $20 per year, to $175 to $300 annually, depending upon your situation and needs.

If you are concerned about professional liability…
You need to acquire an insurance policy that specifically addresses the liability issues of your profession. These sometimes—but not always—are available through a special endorsement to your homeowners policy. We encourage you to contact Brooks to learn what programs are available for you.

If you are working at home on behalf of your employer…
Make sure that your employer’s property and liability insurance will extend to you in the event of business-related property damage or a personal injury situation in your home.

If your home business is becoming more complex…
If your home business is becoming more complex than the parameters outlined above, you probably need to acquire a commercial insurance policy for small business. Brooks will be happy to assess your situation and help you acquire the appropriate coverage. We also encourage you to inquire about what employee benefits and financial services are available for small, growing businesses like yours.