So many of our friends and associates have are finding great success in network marketing companies (MLM companies). They are selling jewelry, makeup, health/wellness products and many more great things. For some this is a side-hustle, others are running this like a full time business. But most don’t consider the risk associated.
Some examples include, but certainly are not limited to:
- A business client is injured slipping on your front porch
- Your computer is destroyed by a power surge during a lightning storm
- Customers’ checks are stolen from your home
- A customer breaks inventory or is injured while you’re exhibiting at a small trade show
Many times, our clients think that there is automatic coverage from their homeowner’s policy for their small home based business / consulting business, however many policies may actually exclude any business pursuits out of the home. However, some companies do offer an additional endorsement that can be added to the policy to cover your home based business personal property such as furnishings, supplies and equipment that are used for the business.
What about liability claims? Under a typical homeowner’s policy, a claim resulting from any of these common scenarios could easily be denied. Keep in mind, most homeowners and renters policies do not cover liability or damage to property from business activities.
So now what? Ask your agent. See what your homeowner’s policy covers. Learn if there is an endorsement (a change) that can be done to your policy to help provide you better protection. Finally, learn what a business policy may cover and if it would be right for you. They aren’t necessarily inexpensive, but for some, it may be worth the peace of mind.
Some of these decision can be complex. Best way to navigate these waters is to work with a licensed independent insurance agent who can educate you on your options and help you obtain the best coverages at the right price. If you’d like to know more about insurance for your business, we’d be happy to help. Feel free to reach us at www.keslarinsurance.com or 603-273-0953.