In Mississippi, there are 257,404 small businesses in operation. If you own a company that works out of your residence, there is specific coverage necessary. Mississippi homeowners insurance can have home-based business protection.

A Mississippi independent insurance agent can help you find a policy that fits your budget and needs. They have a network of numerous carriers so that you have options. Connect with a local expert for tailored quotes in minutes. 

What Is Home-Based Business Insurance? 

Your Mississippi home-based business may have coverage that extends from your home insurance policy. Or you can obtain separate insurance through a commercial policy. The following protection could be utilized for your home business:

• Liability insurance: Pays for a lawsuit claiming bodily injury, property damage, or slander. 
• Equipment breakdown insurance: Pays for the replacement or repair of business equipment damaged due to a power surge, outage, and more.
• Business property insurance: Pays to replace or repair any business property damaged by a covered peril. 
• Professional liability: Pays for legal fees when you're sued due to possible faulty professional services offered.

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What Does Home Business Insurance Cover in Mississippi?

Coverage for your Mississippi home-based business will vary depending on multiple risk factors. The type of operation you own and your assets will play a role in the kind of policy necessary. Check out some options below:

• Homeowners policy coverage: If you simply do desk work from your home office and don't have any business property or any other risk exposures, then you may be able to extend coverage from your homeowners policy. This coverage will only give you your current liability limit, and that's pretty much it. 
• Separate business policy coverage: If you have a more robust business with equipment, inventory, business property, and more, you'll need separate business insurance. These policies may need to come from the same insurance carrier as your homeowners coverage, depending on their guidelines. The policies can include general liability, commercial auto, business property, equipment breakdown, professional liability, and more. 

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What Doesn't Home Business Insurance Cover in Mississippi?

Like any other commercial insurance policy, exclusions will apply. Home-based business insurance will have specific limitations if you obtain protection through your home policy. Typical policies will not include the following coverages without adding them individually:

• Inventory: If you have business inventory, your policy will not provide coverage for replacement or repair. You will need a business property policy that endorses this protection.
• Business equipment breakdown: Equipment breakdown due to a power outage or more will not be covered under your home or standard business policies without manually adding it beforehand.
• Customers on premises: If you have customers showing up at your house to pick up items or come inside for business purposes, your policy could exclude this. Most homeowners policies will prohibit this risk. Some business policies may pick up this exposure depending on what's involved. 
• Commercial auto: If you use your vehicle to for your business, you may need a commercial auto policy. This is separate insurance that will need to be quoted and is not automatically included.
• Professional liability: If you offer professional services like accounting, you'll need to have your own professional liability coverage for any poor advice or negligence that could occur. Your standard business insurance policies will not provide coverage for this type of lawsuit. 

How Much Does Home-Based Business Insurance Cost in Mississippi?

The average annual cost of homeowners insurance in Mississippi is $1,537. Typically you'll have to add a business endorsement onto your home policy that can cost anywhere from $250 to $1,000 annually depending on the coverage. Every carrier will have unique offerings and only allow certain types of operations to be insured under a home-based business endorsement. 

If you have to go the commercial insurance route altogether for more comprehensive coverage, then prices can vary. It will be specific to your industry, gross annual sales, claims history, and assets. To get exact costs, consult with a local professional.

Do Home-Based Businesses Need Insurance in Mississippi?

Commercial insurance is a must, no matter where your business operates. In Mississippi, $3,120,632,000 in commercial insurance claims were paid in 2019 alone. If you have a loss at your home-based business, more than your company could be at stake.

Your personal liability, property, and your business are at risk when a home-based claim occurs. The proper coverage is crucial if you want to avoid a major financial setback. Consider speaking with a licensed adviser.

How to Connect with a Mississippi Independent Agent

In Mississippi, numerous commercial insurance coverages could be necessary for your operation. Home-based business insurance is needed if you work out of your residence. A trusted professional can review your policies at no additional cost to you, making it easy.

A Mississippi independent insurance agent will have access to several markets so that you have options. They do the shopping for you and present the best offer for your business. Connect with a local expert on TrustedChoice to get started today.