Are you the proud owner or founder of one of the estimated 59% of established businesses in the United States that operate from a home? Then, for your business, you are the top dog, head cheese, or grand high poobah.
But just as you realize that there are similarities to all businesses, wherever located, you also know there are often concerns, considerations, and risks unique to a home-based environment. Davis Dyer Max wants to remind you that designing proper protection encompassing both those common and unique risks requires ongoing communication and review of your current insurance and risk management programs.
Yet studies show that of the 11 million-plus home-based businesses, nearly 60% do not have insurance specifically recognizing and providing coverage for these unique risks. When asked about the reasons for this lack of additional insurance, business owners responded:
- They thought they were already properly covered by their personal insurance: 40%.
- They thought their business was too small to insure: 30%.
- They could give no specific reason: 20%.
The first assumption is demonstrably false. Standard homeowners’ policies are designed for personal exposures, not a business. While there may be small areas or limits of coverage available for certain types of home-based businesses, the vast majority will find coverage severely limited or specifically excluded for business losses related to such common risks as theft, vehicle usage, employee injuries, or life/health/disability. The largest potential gap in proper coverage arises from the lack of liability protection for claims arising out of business activities, whether the claim occurs in the home or elsewhere.
The second assumption above is also wrong, and the third response, at a minimum, shows a dangerous lack of knowledge.
Starting a home-based business may be the first step on your road to successful entrepreneurship. Whether your business ultimately remains in your home or grows into the need for outside facilities or a relocation, Davis Dyer Max stands ready to be your ongoing valued partner. Schedule a time today to review your current or future business plans, and let us help you establish a comprehensive insurance and risk management program to protect what we both hope will be your most valuable growing asset.