In this podcast, SCORE mentors chat with Peter Hedberg. Peter started his insurance career in 2003 at Hayes Company in the midwest. Peter handled management liability lines, and professional and privacy insurance. In 2013, he moved to New York and joined the underwriting side at Hiscox, a global specialty insurance company based in London. He currently manages new and renewal technology, professional, and privacy liability insurance for the Northeast Region of Hiscox.
Homeowners Insurance. Many small businesses begin out of their home. Does homeowner's insurance cover their business?
That's a great question, and it's a good place to start because I think that's what most people are comfortable and familiar buying is homeowners insurance, or auto insurance, or other types of personal lines.
Homeowners insurance is really not written or intended to cover a small business, but a vast majority of individuals who have small businesses actually operate them out of their home. It's kind of a gap in coverage that people don't know about.
What does that typically cover?
Your homeowners is really designed to cover stuff that happens to you because you're a homeowner. Property damage, storms, things that damage your roof, water leaks, or that sort of thing. If you have an individual that arrives at your home who is a customer, and say they slip on your stairs. That was a business related activity, and the insurance company isn't intending to necessarily pick that up.
If you have a friend that came over for say a party or just to visit or something, and they slipped, that's a different story. Generally speaking, most homeowners insurance exclude business activities in the home.
Then, to cover my business in my home, what do I have to do?
Some people actually choose to call up their homeowners insurance and actually add an endorsement, which is a document that modifies the policy. Add an endorsement that allows for some business activities to take place in the home. A lot of times, the coverage isn't necessarily robust or sufficient for their purposes of business.
A lot of small businesses actually go out and attempt to buy insurance for their business. Commercial level insurance. That's something that we provide at Hiscox.
There's more. Click play on the video above to listen to the full podcast or download the transcript.