Many clever entrepreneurs start a home-based business to increase income, while at the same time reduce the risk of capital investment needed to start a new enterprise. Using a spare room in a house for business efforts is usually less expensive than renting out an office space for the same operations.<\/p>\n
Surprisingly, a study by the Independent Insurance Agents & Brokers of America found that 40% of business owners operating a home-based business falsely believe that they are adequately insured. Contrary to this popular misconception, usually regular homeowner’s insurance does not cover business uses of a home or part of a home. Regular home insurance may only provide limited or no coverage for equipment.<\/p>\n
A common, yet surprising, example of this concern is that when a person rents out a room in a home to a third-party, the items in the room are usually not covered by the homeowner’s insurance policy. The reason this happens is renting a room means that the function of room changes from personal use to commercial use.<\/p>\n
Having a home-based business is similar. Even if you do not pay rent for the room(s) used; each room’s function changes from personal use to commercial use.<\/p>\n
Many home-based businesses operate as consultants and freelancers. When in-person client contact is minimal, the insurance requirements for a home-based business are modest.<\/p>\n
Foot-Traffic<\/strong><\/p>\n One thing to consider, when you consult with your insurance agent at McCormick Insurance Inc., serving Pembroke Pines, FL, and the surrounding area, is the amount of foot-traffic of clients or customers coming to the home. If people come to the home they need to be protected by insurance from accidents that might occur.<\/p>\n Equipment and Vehicles<\/strong><\/p>\n Additionally, you will want coverage for any business equipment used in the home-based business. Moreover, if you use a personal vehicle for business purposes, there are special insurance requirements for your vehicle in order to have adequate coverage.<\/p>\n Work Down Outside of the Home<\/strong><\/p>\n If some portion of the work is done in the home and another portion is done outside of the home, consider a business owner’s insurance policy. It can take those different types of work into account.<\/p>\n Consult with your insurance agent at McCormick Insurance Inc., serving Pembroke Pines, FL to be sure you have adequate insurance coverage for your home-based business.<\/p>\n","protected":false},"excerpt":{"rendered":" Many clever entrepreneurs start a home-based business to increase income, while at the same time reduce the risk of capital investment needed to start a new enterprise. Using a spare room in a house for business efforts is usually less expensive than renting out an office space for the same operations. Surprisingly, a study by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[30,31],"class_list":["post-190","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-mccormick-insurance-inc","tag-pembroke-pines-fl"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/posts\/190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/comments?post=190"}],"version-history":[{"count":1,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/posts\/190\/revisions"}],"predecessor-version":[{"id":191,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/posts\/190\/revisions\/191"}],"wp:attachment":[{"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/media?parent=190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/categories?post=190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mccormickinsuranceinc.com\/blog\/wp-json\/wp\/v2\/tags?post=190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}