Home-Based Businesses

Openly's underwriting guidelines for an in-home business focus on two primary areas: determining if a business is operated out of the household, and establishing the frequency of traffic at the property. 

Openly can consider properties with an in-home business that have minimal customer / employee visits. However, even when a property is eligible, the policy excludes any losses arising from business exposure.

Agents will see a screening question regarding home-based businesses on the Property Review tab in the portal.

 

Underwriting

Agents must answer two specific questions in the portal to determine if a home-based business fits Openly's risk appetite: 

Portal Question How to Answer Eligibility / Key Notes
Does the Named Insured (or other household members) operate a business from the household? The critical factor is whether the home is being utilized to conduct transactions or day-to-day commercial operations. Daycare Operations: If the home-based business is a daycare where the insured collects payment to care for multiple children who are not family or household members, the risk is generally ineligible.

State Exceptions: Openly does not have an underwriting appetite for those risks–except for Maine and Oregon, where they may be subject to local underwriting guidelines.
How many customers / employees visit the home monthly? Report how many individuals typically visit the property each month. Openly does not have an underwriting appetite for risks with more than five (5) customer or employee visits per month.

Counting Visits: Each day of work or transaction counts as an individual visit (e.g., one employee visiting on six different days in a month = six visits).

Coverage Limitation: For eligible home-based businesses with fewer than five visits per month, property and liability coverage will not apply to any loss directly connected to the business conducted from the insured location.

 

 

For further assistance, contact us via our webform or Live Chat.

Was this article helpful?
0 out of 0 found this helpful