Insurance is a Back Burner Issue for Home Businesses

Home businesses are here to stay, and the accounting profession is one of a number of service industries capitalizing on operating a business at home.

CPAs and accounting professionals who operate from their homes, as well as those in a position to advise their clients on financial matters, should have enough insurance coverage to survive a natural or man-made disaster.

Standard homeowners policies may not be adequate because they do not include provisions for business liabilities or business interruptions. For example, if professionals see clients or customers in their homes and there were to be an fall or accident of some kind, would the business owner have enough coverage? In addition, policies probably don't provide enough coverage to replace computers and other office equipment associated with a business.

According to a survey by the Independent Insurance Agents of America (IIAA), 60 percent of 43 million U.S. home-based business owners are inadequately insured, and a full 70 percent of underinsured survey participants in the survey claimed the turned down additional insurance because they thought they were covered. This number rose 20 percent over the last two years.

Today, insurance companies are tailoring policies for the home office, and may include an Incidental Business Endorsement attachment to a homeowner's policy.

You may like these other stories...

Treasury prepares options to address tax inversionsDamian Paletta of the Wall Street Journal reported on Monday that US Treasury Department officials are assembling a list of administrative options for Treasury Secretary...
Read more from Larry Perry here and in the Today's World of Audits archive.In my previous article, I discussed auditing standards and the impact of the assessed level of risk of material misstatement (RMM) on the design...
While audits of broker-dealers showed some improvement last year compared to previous years, 71 of 90 broker-dealer audits inspected by the Public Company Accounting Oversight Board (PCAOB) in 2013 were still found to have...

Already a member? log in here.

Upcoming CPE Webinars

Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.