“Most home-based businesspeople don’t know they need insurance like other businesses,” says Janet Scott-Buckley, an agent with Harrington Insurance Agency in North Andover, Mass.
A homeowners (or renters or condo) policy gives little or no protection for the business, she says. Someone getting hurt is also a risk, she adds. “If a customer, or even a deliveryman, slips on your doorstep and gets hurt, you could get hit with a big lawsuit,” Buckley says. “Your homeowners policy won’t cover you, so you’d have to hire a lawyer and pay the settlement out of your own pocket.”
It’s usually best to buy a separate policy for the home-based business, Buckley says. It covers business equipment, inventory and supplies at home and offsite — for instance, your laptop. And the policy also covers your business general liability, for slips and falls — at home and possibly elsewhere. If you have employees, you’ll also need workers’ compensation insurance. HBM
Harrington Insurance Agency (www.HarringtonSaves.com) is an insurance agency with locations throughout Massachusetts. A member of the Arbella Insurance Group, Harrington Insurance represents many national and regional insurance companies.
V20-4 Add:10/13 HP: