If you run a home business, protecting yourself, your employees, and your business with the right insurance policies is important. AW Burchell Agency Inc. is here to explain the insurance policies for home businesses in Pennsylvania and New York.

Types of Insurance For Your Home Business

General Liability Insurance

This policy covers legal responsibility for bodily injury and property damage caused by your business operations. It also covers personal injury like libel and slander. This policy can help pay for medical bills, court costs, settlements, and other damages related to lawsuits from injuries or damages caused by your business activities.

Property Insurance

Property insurance is important for any home-based business owner because it helps cover losses due to theft, vandalism, fire, and other events that could cause damage to the building or its contents.

Workers’ Compensation Insurance

If you employ people in your home-based business, you must carry workers’ compensation insurance to protect you and them in case of an on-the-job injury or illness. This type of policy benefits an employee who is injured while performing duties related to their job at your place of business.

Business Interruption Insurance

Business interruption insurance helps protect businesses from potential income losses due to unexpected events such as fires or natural disasters that temporarily prevent operations from continuing as usual. Depending on the specifics of the policy, this coverage may pay out benefits based on fixed expenses (such as rent) plus estimated profits that were lost during the period when your operations were affected by the event.

Give Us A Call

Home businesses in Pennsylvania and New York require several types of specialized insurance policies to operate safely and securely. Contact AW Burchell Agency Inc. today, and we can help you get your business needs covered.

What Is the 80/20 Rule?

The 80/20 rule is a basic concept that applies to all homeowners’ insurance policies. It states that insurers will only pay out up to 80% of a claim’s cost after it has been approved. This means that if your claim costs $10,000, you will only be able to receive $8,000 from your insurer. You must pay the remaining 20% of your claim.

How Does It Work?

The easiest way to understand how the 80/20 rule works is by looking at an example. Say you have an insured event, and the total claim amount comes out to $10,000. Your insurer approves the claim, but since it is subject to the 80/20 rule, they will only cover up to $8,000 worth of repairs and replacements. You are then responsible for covering the remaining $2,000 out-of-pocket or through other sources, such as savings or investments, if you don’t have enough cash on hand or available credit on your credit cards.

What Are Some Exceptions?

The good news is that there are some exceptions when it comes to the 80/20 rule in homeowners’ insurance policies in New York and Pennsylvania. Additionally, some insurers will provide coverage for 100% of certain types of claims, such as liability claims.

Give Us A Call

In short, the 80/20 rule states that insurers will pay up to 80% of approved claims while leaving 20% to homeowners. Still have questions? Contact AW Burchell Agency Inc. today.