Do you Sew from home for profit? There are many unemployed creating new home base business with their sewing machines. Many times creativity creates income to feed the family and pay the bills. Home Base Sewing Business such as alterations, crafts, draperies, window coverings, piece work, embroidery work are supporting many families through out the world. A home based business is a great way to save on overhead cost, but your sewing machines my not be covered on your insurance. Liability insurance is needed to protect your clients when visiting your home or when you are doing estimates in their home or anyone related to your business. You have a lot of money invested and it is your livelihood so you need to protect it.
Do you have Business Insurance on your sewing machines?
According to the National Bureau of Labor Statistics, 3 out of 10 homeowners operate a business out of their homes. More than 66% of the estimated 20.7 million people who work at home are self employed and run a home-based business. It’s estimated that more than half of home-based business owners are under insured and the Independent Insurance Agents of America (IIAA) say nearly 40% of those they surveyed are uninsured primarily because they thought their homeowners policy covered their business.
However, a typical homeowners policy usually only covers damages up to $2,500 on the premises of the home-based business, and $250.00 off the premises. In addition your homeowners policy won’t typically cover liability arising from your home business, for example if a delivery person slips and falls when delivering a package
Then shopping for business insurance, you have three main choices:
• Endorsements to your homeowners policy
• In-home business policy
• Business owners package policy (known as a BOP)
Depending on what type of business you operate, you can usually get an endorsement on your homeowners policy that has higher limits or covers specific perils or risk. For as little as $14 a year, you can double your standard policy limits for business equipment from $2500 to $5,000.
Some companies have started offering endorsements that include property and limited business liability coverage. Endorsements are typically only available for businesses that generate $5,000 or less in annual receipts. They are available in most states.