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I operate a business from an office in my home. Is my homeowner's policy sufficient protection for my business or do I need an additional policy? Business First, Legal Forum, June 7, 2013

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Business First, Legal Forum, June 7, 2013

Authored by Robert T. Watson

It is very likely your homeowner's policy is not sufficient to cover your home-based business. Your policy may provide coverage (generally, in the amount of $2,500) for some property located on the residence premises which is related to your business, but this coverage may be woefully insufficient. Consider the equipment that you rely on for your business--$2,500 may not even begin to replace these items in the event of a loss. Additionally, your homeowners' policy will not cover your business liability. For instance, if someone falls on your property while making a business delivery, then you may be liable for their injuries. If you operate your business out of your garage and the structure burns to the ground, then you are also out of luck. Most policies will not cover property used for business purposes. Do not wait until you are facing a lawsuit or suffer a loss-speak to an insurance agent about what provisions are included in your homeowners' policy and what additional coverage may be necessary.

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