What are the sublimits for business equipment losses under a homeowners policy for on-premises claims?

The sublimit for business equipment losses under a homeowners policy for on-premises claims is indeed $2,500. This amount reflects the coverage limitations placed on business property within a homeowners insurance policy, which is designed primarily to protect personal property rather than business assets.

Homeowners policies typically offer wider coverage for typical residential belongings while placing limits on specific categories, including business equipment used on the premises. Since many homeowners policies are not primarily intended for business use, insurers impose sublimits to mitigate risk exposure for commercial activities conducted in a residential setting.

A higher sublimit would allow for more coverage of business property, which might encourage homeowners to run larger-scale operations without additional coverage. However, the $2,500 sublimit strikes a balance by providing some coverage while discouraging extensive business use of the home that could lead to increased risks.