For many of us, "retirement" begins with downshifting to a home-based business (like tutor, consultant, photographer, or real estate agent). But did you know your PEMCO insurance – like virtually all personal property policies sold in the United States – offers only limited protection for equipment used in business?
If you have a homeowner or condo policy, it tops out at $5,000 for equipment kept at home and $1,000 when it's away from home. Renter policies are limited further and vary by state. In Washington, it's $2,500 for equipment at home and $250 away. In Oregon, it's $2,500 at home and $1,000 away. None of the policies can cover home day care or liability for people visiting your home for business reasons.
Home-business owners tend to underestimate the value of their equipment and the liability risks they may face. Imagine, for example, you give piano lessons in your home. On an icy winter afternoon, one of your students injures herself when she slips on your front stairs. Her parents then sue you to recover the costs of her medical care. Because she was visiting your home for her lesson, your homeowners and even umbrella policy can't cover the mishap. Without business coverage, you could be forced to pay her steep medical bills out-of-pocket.
The good news is, you don't have to risk it. Depending on the size and type of your business, PEMCO may be able to add an endorsement (that's insurance-ese meaning extra coverage for an additional price) to your current policy. Or we can help you find a business owner's policy with another insurer that specializes in the kind of protection you need. The right choice will depend on factors like:
- The type of business
- Whether or not you have employees
- How many clients visit your home
- How and where you store inventory and product samples
- The kind of equipment you use.
We're ready to help you transition out of your 9-to-5 job with Northwest-protected peace of mind. Call your local PEMCO agent or 800-GO-PEMCO to learn more.