Getting small business insurance for a home-based business

Never have home-based businesses been more popular in the United States than today. According to the National Bureau of Labor Statistics, more than 30 percent of all homeowners are conducting a home-based business. However, how many of them have small business insurance?
Homes are the incubators of entire industries – after all, Microsoft started out in Bill Gates' garage – but often such owners fail to recognize the importance of being insured to avoid hefty costs down the line. Homeowners insurance doesn't cover business-related incidents, such as if a client visits you at your home office and hurts himself. So what are your options?

Using Endorsements to Get What You Need
Most homeowners insurance policies offer some sort of option to increase the liability coverage. This increase is called an endorsement, and it only covers specifically named issues you think could arise. They're also only for certain types of businesses, so don't expect your dynamite-making business to get endorsed. Often this offers little extra in the way of coverage – perhaps an extra few thousand dollars.

Specific Home Business Policy
If you want some worthwhile coverage then this is the place to start with. The rise of the home-based entrepreneur has given rise to the home-based business insurance policy. Companies go where the money is, and it seems many Americans are keeping the money at home. To help better protect its customers, many insurers offer small business insurance for home-based companies with general liability policies worth in excess of $10,000. Policies can go up to $300,000 or $1,000,000, depending on the business and insurer.

The Full Package
If you want the best available in home-based small business insurance, look no further than the Business Owners Package Policy. Available in 39 states, this type of insurance has much flexibility, covering the company both at home and anywhere else it might conduct business. If you manufacture items off-site, this insurance can cover it.

Choosing an option will depend on your budget and amount of coverage needed. One thing's for sure; if you're sued but have no insurance, your dream may come to a screeching halt.