Office Sales

Little Protection Offered By Homeowners Coverage

Don't expect much business coverage from your homeowners policy. Usually a homeowners policy can be modified by adding an option to increase the protection for business property. However the available typically provides up to only $2,500 for personal property used for business and kept on the residence premises. Further, coverage often does not apply to business property that you are, storing as inventory, holding as a sample, or keeping until the property is delivered to a buyer. Such options also usually exclude business property related to a business conducted on the premises. For example, if you are a cosmetic sales rep (Mary Kay, Avon) and you keep inventory in storage, there is no coverage. If you are a day care provider, there is no coverage for cribs, high chairs, walkers, toys, etc. since the business is conducted on the premises.

Options For Salespersons

If you are a sales person operating out of your home and have limited inventory, some companies will cover you with the Businessowners policy. The Businessowners policy provides broad coverages for buildings, personal property, loss of business income and extra expense incurred to remain in business (after a fire or other covered cause of loss), premises liability and medical payments. If you have more than $1,000 of goods off premises in transit, you will need to add additional coverage. Goods stored at other locations must be added to the policy.

If you cannot qualify for a Businessowners policy and a home business endorsement or separate policy fails to meet your need, your agent will probably have to build a special commercial package policy to handle your business. You will need a competent commercial lines agent to help you. Commercial lines agents have both the expertise to design the appropriate coverage and the markets for your sales business.

You will need workers compensation coverage for any employee-even part timers.

You may need commercial automobile insurance if you deliver anything or if your vehicle is larger than a car, van or small pickup. Another reason for buying a commercial auto policy is if any auto is corporately owned.

Article Revised 09/01