To make business insurance more affordable for people who operate a business out of their residence, many insurers now offer coverage as an extension to the homeowner’s policy.
Since the premiums under these policies are lower than those for stand-alone commercial covers, there are several eligibility criteria:
Eligibility Criteria For Home Business:
Home-based business insurance provides the same protection for business property as your residential policy does for your personal properly. Protection against fire, lightning, explosion, vandalism, water damage theft and so on are included where they are already part of the residence policy.
The Personal Liability Cover included under the household policy is extended to include liabilities arising from the home business operations.
The limit of indemnity is the same as that on the household policy but, can be increased to €2,000,000.
Professional liability coverage (such as Errors and Omissions or Professional Indemnity), is not however included.
Business Contents Coverage can be included for such items as computers, software and fax machines.
Special coverage can also include, accounts receivable, valuable papers, extra expenses, loss of business income actually sustained, and loss of money and securities inside and outside the residence.
Remember, not only is home-based business insurance affordable, its premium is a tax deductible business expense.