How to Get an In-Home Business Policy

If your home business involves lots of expensive inventory, equipment or a high risk of personal injury liability, an in-home business insurance policy may be best for you. While endorsements to existing homeowners insurance policies are effective for many businesses, in-home policies provide a broader and deeper range of protection for your investment in your home business.

Difficulty: Easy

Instructions

Things You'll Need:

• Business records

Decide What Types of Coverage You Need

1. Create a list of all business inventory you store in your home. Calculate the replacement cost for your inventory and make a note of it. This will help you decide what coverage amount you need when you get an in-home policy.

2. Take notes of how many people besides yourself are physically involved in your home business. Include delivery and shipping people who come to your home, customers and any employees. This information will help determine whether you need to get a higher home business liability limit in your in-home business policy.

Compare Coverage and Prices

3. Talk with your homeowners insurance agent. Since you already have a relationship with this agent, she may be more willing to honestly tell you what types of coverage and limits your home business is likely to need. Request a written quote from her that you can take with you.

4. Contact major insurance companies and ask for information about in-home business packages. Many large insurance companies offer package policies that provide liability, property and loss of income home business insurance.

5. Schedule appointments with agents for those companies whose information appealed to you. Bring your inventory, employee and business equipment lists with you so that you can discuss specific coverages and prices. Get written quotes so that you can compare them later.

6. Check with small business or professional organizations to see about group in-home business insurance policies. Many business associations barter for lower rates on in-home business policies for their members. The cost of joining an association could be offset by the savings on a group negotiated policy.

7. Gather all of the written quotes and compare the policy limits, coverages and prices for each to determine which will provide the best coverage for your particular business. Pick the two or three best policies and return to each agent to see if they are willing to negotiate a better price.

8. Choose the best policy, and read it carefully before you sign it to be sure that it matches the quote you based your decision on.

Tips & Warnings

• You may save money on your insurance premiums if you get your in-home business policy from the same company that sold you your homeowners insurance.
• Consult your local chamber of commerce to research lists of business associations you may be interested in.