The property section of the homeowners policy is designed for residential type risks, not business risks. Even though the design of the policy is for personal residential risks, a minimal amount of business property coverage, typically $2,500 at the residence premises and $250 away from the premises, is usually provided.

The courts have defined “business,” as used in homeowners policies, to mean an activity that earns revenue and is continuous. A weekend garage sale a couple times each year would not fit the definition of “business,” but, if you were taking in property to sell on consignment from around the neighborhood and running your garage sale on a regular schedule, you have a business. If your business property is owned by your employer but furnished for your use to complete your job responsibilities, check to see if your employer has made arrangements for coverage. If you have more than the typical $2,500 limit, or take property with value higher than $250 off premises, then you need to talk to us about additional coverage.

Buying additional coverage for business property on premises is pretty easy. The same coverage for business property away from the residence will require additional underwriting, as some insurers are reluctant to provide this coverage. In almost all cases, business data is not covered. The simple answer to this dilemma is to avoid the possibility of loss with daily backups. Give your agent a call if you have any questions.