(800) 869-8643

admin@hayesbrokers.com

More on Home-Based Businesses

More on Home-Based Businesses

Home-based business owners and entrepreneurs who work or create from home may think they are exempt from business insurance coverage. After all, there is no commercial office or retail space to insure, so why would insurance be necessary? These business owners may also believe that if there is an insurance issue, their homeowners or renters insurance policy will cover them. Unfortunately, that isn’t the case. Nearly all personal lines (homeowners and personal auto) policies exclude any type of business done in the home or on the residence premises. The policies exclude not only the work being done (both tangible and intangible work product) but also employees, inventory, business equipment, and autos used for commercial enterprises. Fortunately, insurance coverage is available for your home-based business. Hayes Brokers is your insurance partner, helping to find coverage for: Business personal property, inventory & electronic equipment Business/Commercial Liability Professional Liability    Products Liability Workers Compensation Commercial Auto Commercial Umbrella Coverage Cyber Liability Employment Practices Liability Crime Health & Disability Be sure to read more on what’s covered and not for your home-based businesses. Commercial insurance for your home-based business can help protect your personal assets from corporate claims related to your business. Don’t risk your family’s financial future on an assumption. Call Hayes Brokers today to schedule a free, no obligation risk management analysis and find out how to protect both your family and your...
Workers Compensation for Home Based Businesses

Workers Compensation for Home Based Businesses

When you own a home-based business, it can be easy to overlook certain insurance coverage in favor of simply getting the work done. Business from home can seem a very different animal than businesses run in a more commercial setting. An oft-overlooked but important coverage is Workers Compensation Insurance. Your business and its employees are not provided any coverage under a homeowners insurance policy, and employees that are required to have work comp benefits under state law are specifically excluded. How do you know if you need to provide workers compensation? How do you get this coverage? Workers Compensation Law Laws pertaining to workers compensation vary by state and can be found on the state’s Workers Compensation department web page. A list of basics by state with links to their websites can be found here. In California, any business with one or more employees must provide workers compensation insurance coverage for those employees. The code does not qualify that by the financial size of the business or the location of that business. (Who is considered an employee? Read more about that here.) What happens if you don’t provide workers compensation insurance for your employees? Again, this varies by state and is outlined on the state website. The California website lists these penalties that far outweigh the cost of getting and keeping workers compensation insurance: “Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally...
Home-Based Businesses

Home-Based Businesses

You’ve no doubt heard the stories of big businesses that were started in someone’s garage. Windows, Apple, Hewlett Packard, Disney and many other companies began with an idea and started out as a home-based business. Could the next big idea come from your garage or dedicated home office space? It’s possible. While you’re building that dream, sometimes things happen along the way, and your home office or workspace could be damaged. Will your homeowners or renters insurance respond? The short answer is: no.  Here is the lowdown on what your homeowners policy won’t cover, and how to protect yourself if you have a home-based business, or even if you just work from home. Your Homeowners Policy Won’t Cover You The Insurance Services Office (ISO) standard policy Homeowners 3 – Special Form (HO3) is used as the basis for most homeowners coverage. Not all insurance companies use this exact form, so it is best to read your policy and talk to your broker. The HO3 defines business as “a trade, profession or occupation engaged in on a full-time, part-time or occasional basis” or “any other activity engaged in for money or other compensation”. Your homeowners insurance policy is designed to cover your home, your personal items and your personal liability. It was not designed to cover business pursuits, and in fact excludes operations out of the home related to business. Other Structures: Coverage is excluded for other structures “from which business is conducted”. If you run your business out of the shed or garage, there is no coverage. Business Property: There may be some very limited coverage for business items...