Renters’ insurance policies provide no or minimal coverage for work-related tools and equipment. However, you have several options for gaining coverage if they run a home-based business. If you live in the Sioux Falls, SD, area, our team at Wilcoxon Insurance Inc. will review your insurance options and identify the renters’ coverage that suits you best.
Understanding Renters Insurance and Working from Home
Working from your house or apartment has many benefits, regardless of whether you own or rent. However, you need to know that working from home leads to insurance issues concerning your home-based business assets.
Your renters’ policy is usually intended to cover your personal property only. It does not cover equipment owned by your business, or it covers a minimal value, such as assets totaling $2,500 in value. Many home-based businesses have office furniture and electronics, supplies, inventory, or tools worth more than $2,500 that are uninsured unless you take additional steps. If your business assets are limited, you can add a rider or endorsement to your renter’s policy to cover up to $5,000 in business assets. If you own more, you should acquire a commercial insurance policy.
As important, a personal renters’ policy does not cover the liability for work colleagues or customers injured at your residence while engaging in business activities. However, a commercial insurance policy suited for small businesses will address that problem and provide other protections small businesses need.
Discuss your situation with your insurance agent to ensure you are adequately protected.
Working with Wilcoxon Insurance Inc.
Wilcoxon Insurance Inc. proudly serves the Sioux Falls, SD, area. We will help you select an insurance plan protecting both your personal and business assets. Stop in today or call (605) 271-6600 regarding your insurance needs.
