Operating a business from home is often cost-effective and convenient. However, many business owners may not realize that standard home insurance provides limited coverage for business activities. If you’re relying solely on your home insurance, you could be leaving critical gaps in coverage. If you’re running a business in Plano, TX, Paragon Independent Insurance Agency is here to help you determine the type of insurance you need.
What Home Insurance Might Cover
Most home insurance policies provide very limited business coverage, including:
- A small amount of coverage for business equipment (often capped at $2,500 or less)
- Protection against certain losses, such as fires or theft
However, this coverage typically applies only to property damage and does not include income loss or liability.
Where Home Insurance Falls Short
Home insurance generally does not cover:
- Business liability if a client or delivery person is injured
- Professional mistakes, errors, or negligence
- Loss of business income after a covered event
- Employees, contractors, or business vehicles
When Additional Coverage Is Necessary
As a business owner, knowing when additional coverage is necessary is crucial. You may need to look beyond standard home insurance if your at-home business:
- Has regular client or customer visits
- Employs others or works with contractors
- Stores inventory or products
- Generates significant income
- Uses specialized or expensive equipment
Working with an insurance agent can help you determine which policies are best for your unique situation.
Understanding the type of home and business insurance you need is essential when running a business from your home. If you’re located in Plano, TX, Paragon Independent Insurance Agency is here to assist you. Contact us today for a quote and consultation to learn how we can protect your business from all angles.
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