At Busick Insurance Agency LLC, serving Orleans, IN, we want your home-based business to receive the excellent coverage that your home does from its home insurance. You might think you need a separate policy, but you don’t.
Rider or Endorsement
Home-based business owners can add a rider to their home policy that covers their business’s equipment, inventory, and business liability. Doing this makes purchasing insurance easy.
You will need a separate policy if you eventually move your business outside of your home to an office. Still, until then, you can add an endorsement or a rider to your policy for your business.
A rider protects your business for up to $5,000. It typically covers the business equipment and may also extend to the inventory.
An endorsement provides more comprehensive coverage than a rider. With an endorsement, you customize the coverage provided to cover business inventory or equipment fully.
Which do you need?
Meeting with an insurance agent can answer this question for your specific business, but typically, small companies with less than $5,000 in income annually can use the rider. Already established businesses that earn a business income of a normal annual salary in the US or greater would require an endorsement. So, if your business pulls in $18,000 per year or more, you’d need the endorsement.
Other factors also influence the choice, such as what other insurance you already own. Whether your business carries physical inventory also influences whether you obtain a rider or an endorsement.
Contact Busick Insurance Agency LLC, serving Orleans, IN, today to learn about covering your home business under your home insurance policy. Call or email us today.