I run a business from my home. What coverage do I need?

Running a business from home gives you the flexibility to create your own hours and spend more time with family. Homeowner’s policies provide limited or no coverage for a business conducted in your home or in a detached structure at your home location. Whether your business is part-time or full time, you’ll want to consider a home-based business insurance coverage to make sure that you’re covered.

If I’m Working from Home, Doesn’t My Homeowners Policy Cover Me?

Your homeowners coverage doesn’t necessarily protect all your merchandise. For smaller businesses, you can sometimes purchase separate endorsements to expand your coverage. These are best for businesses without a lot of merchandise or equipment and does not protect your business from liability.

Home-Based Business Coverage

There are many different types of businesses that you can run from your home and each industry has its own risks. If you have a lot of business inventory at your home, sell products out of your home, or travel to clients’ properties for work, you’ll want to consider what coverage you might need and if a home-based business policy will work for you.

Home-based insurance policies are ideal for medium sized home-based businesses who have valuable merchandise, tools, or need liability protection. Types of coverage you get with a home-based business insurance policy include:

• Property Coverage – protects your business assets from loss or damage.
• Liability Coverage – protects you from liability claims.
• Lost Income Coverage – if you have to pause operations for a length of time and lose out on revenue, you may be reimbursed for those losses.

If you run a larger home-based business, you’ll want to consider if a commercial insurance policy is a good fit for you. Commercial insurance policies are meant for larger businesses with assets that need extra protection or extra liability coverage.