It’s important to consider insurance when starting or running a small business in East Orange, NJ. If your business is located in your home, you might wonder what kind of insurance will cover its equipment: home or commercial? The answer varies depending on certain details, including the type and size of your business.

Basic Coverage

Home insurance may provide limited coverage for equipment owned by home-based companies, but you’ll need to refer to your specific policy. Compared to business insurance, a homeowners’ policy usually has a lower cap on the value of commercial equipment and materials it will cover (if any).

Be aware that home insurance usually doesn’t provide commercial liability coverage. Liability is important if clients or other individuals visit your home to engage in commerce-related activities. Likewise, it won’t cover lost business income after a fire or other covered event.

Endorsements

Some insurers offer endorsements or "riders" that add small business coverage to existing home insurance. They cover commercial equipment and liability without the need for a separate policy. Some endorsements are customized for specific types of businesses, such as childcare providers.

Separate Policies

In certain situations, obtaining a separate commercial insurance policy makes sense. Many entrepreneurs choose business owners’ policies, which are bundles of multiple coverage forms. Others buy specific types of insurance, such as product liability. The best option differs based on your product or service and how you deliver it.

A knowledgeable agent at Clinton Robinson & Associates Agency can help you decide what type of commercial policy or rider is appropriate in your particular situation. We understand the specific insurance needs of home-based business owners. Clinton Robinson & Associates Agency has more than four decades of experience. Please call 973-675-2515 to contact our independent agency in East Orange, NJ.