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Old 7th October 2004, 05:05 PM   #2

Join Date: Oct 2004
Location: San Francisco Bay Area, Ca
Posts: 33
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Originally Posted by Linda
Welcome to the forum Curt,

I was curious what kind of insurance does a home-based business have to have or should have. I mean you can get sued for just about anything these days. We could certainly use your expertise on the forum. Great to have you here.

Hello Linda!

Home based businesses are as susceptible to lawsuits as any other business. Depending on the type of business, for example consulting or an online retailer, different coverages apply. Do you have customers come to your home? If so, liability is an issue that should be addressed. You should already have liability coverage attached to your homeowner's policy.

I'll use an example of one of my clients. She runs a flower arrangement business out of her home. When performing duties outside of the home, she is responsible for any liabilities that arise from her duties. If she had spilt water on the floor, and someone slips and falls, the injured party will most likely try and sue the owner of the premises. The owner will come back and subrogate against my client for the amount of the loss. Now if she was uninsured, that would come out of her pocket and the homeowner's would not cover it since this incident arose from her professional liability. Liability is meant to cover against 3rd party claims.

Not all homebased businesses are susceptible to these risks. What type of business are you inquiring about?

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