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Home Business & Auto Insurance - Florida

post #1 of 3
8/10/12 at 9:12am
Thread Starter 
I am just starting putting this whole business together, from home. I'll be doing wedding cakes, cookie amenities, chocolate sculptures. I am so overwhelmed with how and where to start!
I called my home/auto insurance (GEICO) and they told me they would not endorse my home or car under the current policy for my home business even though it would be part-time with less than 4 deliveries a month. So I asked for an auto business quote and the said $1885 a year!

So, what am I supposed to do? Is auto and home business separate? What do I say to get the best quotes? What type of coverage do I ask for?

I want to make sure I am covered in case someone get sick, the product is lost or damaged, a client does not like it or says it wasn't what they ordered, etc.

Help!
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post #2 of 3
8/10/12 at 5:19pm
A commercial auto policy is not necessary, nor required in Florida, for your cake business. Your regular auto policy already has noted your anticipated work related mileage and for 4 deliveries a month...well, that's nothing in terms of your total amount of driving.

You should ask for a general liability policy for your home-based business. Your agent should help you through all the particulars, like coverage limits and such. However, your business policy is really only in case someone gets sick. Your homeowners policy should cover your home if you damage it while cooking, but you could ask your agent about that if you think it's an issue. Your business policy won't cover things like cake damage or it not being what they ordered or if they think it tastes bad. In those cases you would just offer refunds or discounts as your deductible will most certainly be higher than the cost of your average cake.[/quote]
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post #3 of 3
8/10/12 at 5:35pm
Quote:
Originally Posted by cakemama2010

A commercial auto policy is not necessary, nor required in Florida, for your cake business. Your regular auto policy already has noted your anticipated work related mileage and for 4 deliveries a month...well, that's nothing in terms of your total amount of driving.


Driving to and from work is not the same thing as using a personal vehicle for your own business. Commercial auto coverage may not be required, but if you get into an accident delivering a cake to a customer and the insurance company finds out they could potentially deny your claim.

Quote:
Quote:

You should ask for a general liability policy for your home-based business. Your agent should help you through all the particulars, like coverage limits and such. However, your business policy is really only in case someone gets sick. Your homeowners policy should cover your home if you damage it while cooking, but you could ask your agent about that if you think it's an issue.


Yes, definitely ask your agent about this. If the kitchen catches on fire while you are baking a cake for a customer, that's commercial activity and again the homeowners insurance company may be able to deny the claim if there is no rider for commercial coverage or a separate commercial policy.

There's no need to use the same insurance company for your commercial policies and your personal policies, so be sure to get several quotes that compare policies with similar terms.
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