Is it hard to get a general liability policy for a home based business?

Answer 1

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Answer 2

It depends on the nature of the business, NOT the home base. GL policies don't care WHERE the business is based, home, office, warehouse.

So, several things to consider.

1. If it's a VERY harmless home based business (like delivering newspapers or fliers) your homeowners carrier MIGHT give you a small "business in the home" endorsement. Normally the homeowners policy covers $250 of business equipment - you'll probably have to increase that.

2. Depending on the nature of the business, if you DON'T have a business policy, and sometimes even if you do, your homeowners carrier MIGHT cancel your homeowners policy, as there is "increased risk" and it might be too much risk for them - such as having a consulting business, where clients come to your house.

3. Liabiltiy for a startup business is usually MUCH more expensive, as most standard carriers want three years of insurance history in order to give you a cheap rate. Expect to pay at LEAST $1,000 for liabiltiy for a start up business, if it's service oriented. If you have a product, and need product liability, it will be A LOT more.

You'll need to contact a local, independent agent for help.

Contrary to what someone else posted . . . a PERSONAL UMBRELLA will NOT give you coverage for a business. So sure, it's great to have one, but it's not going to meet your needs or accomplish your goal.

Answer 3

You can usually get some coverage on your homeowners policy for a home based business, but a general liability policy is a good idea. Here is some more information on a GL policy - http://www.insuremywork.com/general-liability.html

Answer 4

Your most cost effective alternative is likely to increase liability through your homeowners policy (and be sure that you have a rider for your home-based business), or purchase an "umbrella liability" policy. Often the umbrella liability can be purchased from your homeowners insurer, and you can get discounts that way.

Answer 5

No, it can easily be done. However, you may want to ask your broker about an "umbrella policy" instead ... it's much more reasonably priced.