A home-based business is any business with its primary office in the owner’s home, regardless
type or size. Many well-known companies started out as home-based, including Apple, Baskin-Robbins,
Hallmark and Purex, according to the contractor. With so much that can be done online, working virtually from home is more feasible than ever today.
A business run from the comfort of your home is still a business, and it needs to be insured
same as any other operation. Homeowners insurance and renters insurance do not cover home-based
business. With the potential for business debt today, you’d be wise to have some
combination of business insurances on site.
What Types of Insurance Coverage Does a Home Based Business Need?
The type of insurance you need for your home-based business depends on your industry or business. Our
experienced agent can help you decide what types of coverage to buy. The following are some
common types of home insurance:
- Business property: If you use any equipment to run your home based business, it should be
insured against damage or loss. This may include a computer, printer, fax machine, office furniture, etc.
Business equipment is generally not covered by homeowner̵7;s policies in the event of fire, flood, or
- Responsibility: This coverage protects your company from liability for damage caused to others
person or property. If a carrier making a business delivery to your home is injured in a slip and
falls on your property, you need liability insurance. Your home insurance doesn’t cover it.
- Commercial vehicle: Your personal car insurance does not cover the use of your vehicle for
business purposes. If you are involved in an accident, for example while visiting a customer, or
pick up or deliver items to your business, you need commercial auto insurance to be
- Professional responsibilities: Whether they work in or outside the home, professionals need
professional indemnity insurance for protection against claims by clients or patients for
negligence, failure to deliver, mishandling, misrepresentation or mistake. This type of coverage
is essential for doctors, lawyers, accountants, engineers, real estate agents and any professional with expertise in a particular field. Professional liability is specialty protection that is not provided under in-
home business policies or home owner recommendations.
- Product liability: If your home-based business manufactures or supplies a product, talk to
our product liability insurance agent. This coverage protects your business against
product liability claims for damage or injury caused by a product that it designed, manufactured,
- Worker’s comp: If your home-based business has employees, you may need workers
indemnity insurance. In some states, this coverage is mandatory if you even have one
employee. Workers’ compensation covers work-related injuries and illnesses. If your employee is injured
at work it will cover related medical costs and reimburse your employee for a portion of
his or her lost wages.
Sit down with our knowledgeable agent to discuss the types of insurance you may need for your home
based business. We can help you find the right coverage for the best available rates.