Small businesses are a big part of our society, but they’re also a major source of personal injury and property damage claims.
Small business insurance is important, but if you do not own a house, car, or RV, your home policy won’t cover you, according to a new study from the Insurance Information Institute.
The Institute’s Small Business Health Survey (SIHS) surveyed 1,200 small business owners across the country.
According to the survey, small business homeownership is now the number one reason for business-related claims, accounting for 20 percent of the overall claims in the U.S. Small businesses also account for 15 percent of total personal injury claims and 16 percent of property damage.
Small business homeowners insurance coverage for home damage and injuries is the same as for other insured businesses, with a deductible of $1,000 per incident.
The deductible for all businesses is capped at $2,000.
This means you can pay up to $10,000 for an incident in your home, but you can’t pay more than $1.5 million.
For other personal injury injuries, such as car accidents, there are limits on the amount of claims you can file.
Small-business homeowners insurance covers a smaller portion of business-associated costs, such a car accident, damage to your property, and the cost of repairs, according the Institute.
If you do own a small business, but your business is not in a home, car or RV industry, you may need to consider getting a home policy for it.
The Institute found that homeowners insurance for small businesses costs a median of $7,000, while renters are only $2.
The median deductible for small-business renters is $4,500.
In addition, home owners insurance covers up to 50 percent of business related claims.
For more information, visit the Small Business Insurance Information Center.
The information in this article was last updated March 31, 2018.