Which endorsement adds coverage for business property, income, and liability for a home-based business with certain limits?

Which endorsement adds coverage for business property, income, and liability for a home-based business with certain limits?

• A. HO 04 97
• B. HO 07 01
• C. HO 04 42
• D. HO 24 82

Answer: (B)

The idea being tested is how a homeowners policy can be expanded to cover a home-based business. The endorsement that fits this is the Home Business Endorsement. This endorsement attaches to a standard homeowners policy and adds coverage specifically for business exposures at home: it covers property used in the business (business personal property), it can provide coverage for income lost due to a covered loss that interrupts the business, and it adds liability coverage related to the business activities, all within defined limits. It’s designed for small at‑home operations like a home office, craft business, or similar venture, where ordinary homeowners coverage wouldn’t fully protect business assets or business-related liability. The three areas—property, income, and liability—are addressed together under this endorsement, which isn’t provided by standard homeowners coverages alone.

The idea being tested is how a homeowners policy can be expanded to cover a home-based business. The endorsement that fits this is the Home Business Endorsement. This endorsement attaches to a standard homeowners policy and adds coverage specifically for business exposures at home: it covers property used in the business (business personal property), it can provide coverage for income lost due to a covered loss that interrupts the business, and it adds liability coverage related to the business activities, all within defined limits. It’s designed for small at‑home operations like a home office, craft business, or similar venture, where ordinary homeowners coverage wouldn’t fully protect business assets or business-related liability. The three areas—property, income, and liability—are addressed together under this endorsement, which isn’t provided by standard homeowners coverages alone.