If you work from home, you may not be aware that business liabilities can become personal losses. Small business owners can protect their assets with Home-Based Business Endorsements on their Homeowner and Umbrella Insurance policies. However, this type of business coverage tends to be less comprehensive than a Business Owners Policy.
What is Personal Umbrella Insurance?
Most small business owners have a primary General Liability or Homeowner’s Insurance policy. These policies typically limit how much the insurer will pay for bodily injury or property damage claims. Personal Umbrella coverage is a type of Personal Insurance covering legal defense and liability costs beyond your primary coverage limit.
Umbrella Insurance can cover home-based business losses if you have the appropriate endorsements on the underlying policies, and those limits have been exceeded. If you do not have the Home-Based Business Endorsement on your Homeowner’s Insurance policy, you could still be carrying immense liability risks; the umbrella policy might not be able to help you out of. Thus, you must discuss any exemptions, restrictions, or contract inconsistencies with your agent to ensure you have adequate coverage.
Do I Need Umbrella Coverage if I Work From Home?
A Homeowner’s Insurance policy, with the Home-Based Business Endorsement, can help protect you from unforeseen losses while running a home-based business. In the event the losses become catastrophic, an umbrella policy can kick in and protect you from claims resulting from:
- Personal Injury to Others
- Property Damage Liability Loss
- Slander and Libel
- Wrongful Eviction
- False Arrest
- Defamation of Character
- Malicious Prosecution
If you don’t have a Business Owner’s Policy (BOP) and want to safely work from home, adding a Personal Umbrella policy is highly recommended.
Consider the following hypothetical scenarios when Personal Umbrella coverage, with a Home-Based Business Endorsements attached to the home policy, can save the day.
1. Slip and Fall
A client visits an IT consultant at their residence for a meeting when they slip and fall in the driveway, suffering a neck injury. Fortunately, the consultant’s home policy could cover some of the costs. For other medical costs exceeding the home policy limits, the umbrella coverage could cover the excess medical expenses.
2. Document Loss
A tax advisor keeps client documents on file in a home office. One day, an electrical fire destroys portions of the house, including business-related paperwork. Luckily, the Home-Based Business Endorsement could help cover the losses of recovering essential records.
3. Property Damage
A marketing manager decides to meet with a business partner at home. During the conversation, the manager’s pet spills a glass of water on the guests’ laptop. Thankfully, the Home-Based Business Endorsement on the home policy, could help pay for a replacement.
How Sagen & Associates Can Help
The details regarding how a home business is defined, which industry you work in, and what liabilities are covered can vary widely across different insurance companies. Sagen & Associates in Racine & Brodhead, Wisconsin, can help you navigate your coverage options. We’ll help you find a policy that addresses the unique liability exposures of your work-from-home situation.
Sagen & Associates in Racine & Brodhead, Wisconsin, can help you find Personal Umbrella Insurance coverage designed to meet your needs. Allow us to help you obtain a comprehensive and affordable policy that protects you and your loved ones from a devastating financial loss.
Learn more about Personal Umbrella Policies by contacting Sagen & Associates. Our insurance professionals are always happy to answer any questions you have.