Do you or someone you know own/operate a home based business? These businesses include any of the MLM style business, the ‘parties’, but also extends to CPAs, professionals, any business that you have clients/customers come to your home. How about all the MLM and party businesses… you may be thinking – ‘Oh, I’m not worried, I go to my friends and families home’s and throw the parties there.’ Guess what…. I am talking about you too.
What am I talking about? Insurance of course!!! Did you know that any of the business’s listed above (and plenty of them that are not listed) are NOT covered under you traditional homeowners insurance. By having clients/customers come to your home you are creating an additional ‘risk’ or ‘exposure’ which needs proper coverage. Picture this…. You have a client come over to your home, leading them to the area that you will sit around and discuss business. While walking your client trips on a runner, rug or even an extension cord. They fall really hard (especially if they are elderly) and break their arm. A blood cot forms, and now there is a serious medical concern. Even worse – a client falls down a flight of stairs and has a very tragic ending from the tumbling. Your home insurance will not cover any of the medical or liability judgement’s if you do not have the home based business endorsement on your policy.
Now some of you may be thinking Wow – I sure am glad I don’t have clients come to my home and I do the ‘parties’ or transact at my client’s house. Well picture the same scenario above – but you setup a display or ‘showcase of products’ at your friends house to host the party. Same thing happens – a client trips and falls from your display or showcase and is seriously injured. Guess what? YOU as the business owner are liable. The homeowner is NOT. Do you have business insurance? Do you have the home based business endorsement on your homeowners policy?
Remember, insurance is for the sudden, unexpected events that have a high financial impact. But you also have to make sure your bases are covered. Even something as simple as selling candles or bags can lead to a million dollar lawsuit due to a customer tripping on a display. You do not have to be a millionaire to be sued like one.
These endorsements are very reasonable and worth adding to your insurance policy. Typically only around $5-10/month you can have the proper peace of mind. This pricing is for our carriers, and could vary. Each carrier will operate differently. You will be surprised to find out some companies will not allow you to add this coverage to your home and will require you to obtain a separate business insurance policy – to which we can help with that too.
Thanks for stopping by our blog posts, make sure to check out our other posts and our You Tube channel. We try to educate by focusing on state law more so than specific options that our agency has. Sometimes, like this one, we have to get more into about our specific carrier options but overall we prefer to stick to state laws.
Please share this with anyone you know that has a home based business, especially the ‘party’ businesses that are held at others homes as most of those folks are probably unaware of this concern.
Video Transcript for the Hearing Impaired (Closed Captioning is embedded in the video):
Do any of you have a home based business or a MLM company (Multi Level marketing business)? Stay tuned, this video is just for you!
Hey everyone welcome back! Ronald Hyre here, Farmers Insurance Hyre Insurance Agency. So you have a home based business, I assume you do since you’re still watching. Or the MLM companies. What you probably aren’t aware of you need to have an endorsement on your Home Insurance policy. If you host a ‘party’ at someone else’s house, or your own home, and somebody gets hurt, you do NOT have coverage. That’s right, you DO NOT have coverage. If you’re a home based business like an accountant or insurance agent, and you have clients come to your home, you don’t have coverage.
Please make sure you review your home insurance policy. Contact your agent, contact us, we are more than happy to review anybody else’s home insurance. No obligation, no cost, we like to make sure everybody’s protected the right way. The last thing we want to see happen you lose your business and your livelihood, and your home, over something as simple as an endorsement on a home insurance policy.
Please reach out to us we’re here to help, we try to help educate at the same time. Keep us in mind if you have any video ideas and we look forward to talking to you soon.
Make it a Great Day!