Do I Need Commercial Insurance for My Texas Home Based Business?

One of the most common questions Huntington policyholders ask insurance agents is whether owning a home based business requires a full commercial insurance policy. This is a difficult question to answer and there are many variables that whether this type of policy is actually warranted. Usually, it depends on the type of business you are operating and how much commercial activity actually goes on inside your residence. Here are a few things to know.

Homeowners Policies Usually Exclude Small Business Endeavors

In Texas, most homeowners policies exclude small business endeavors. This means that, in certain scenarios, you would not have coverage should a claim occur. For example, keeping a room filled with inventory for your business and your home burns to the ground. You may not have coverage for reimbursement for the damaged items because they were part of your home based business.

Home Based Business Riders Are Often Available

Usually, small businesses where you are selling another company’s product do not need a specific commercial policy. This includes personal care products (vitamins, cosmetics, and wellness), houseware items, children’s products, etc. In this case, a home based business rider added onto your existing homeowners policy would be your best bet. This covers any inventory inside your home, including things in the garage and your vehicle.

Commercial Insurance Policies May Be Needed in Certain Cases

In certain cases, talking to commercial insurance agents might be necessary. You will want to contact a Huntington agent directly if you are in an industry that requires:

  • Professional liability insurance (such as contractors, doctors, and lawyers)
  • Product insurance (such as manufacturers of consumer products)

Of course, every situation requires in-depth review the ensure you have adequate coverage—both personally and professionally. Speaking with your local agent is always the best way to determine the correct path to take.

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