Home-Based Business Insurance

Many people assume they’re covered by their personal homeowner’s insurance policy when they operate a business out of their home. This may not always be the case, and really depends on the type of business you’re running.

There are many types of in-home businesses run by creative individuals who have found a way to turn their talent and passion into a means to earn supplemental income. We see clients who offer services such as hair styling, computer repair, marketing and advertising, tutoring, consulting, accounting, and more. Others sell products online (Amazon, eBay, Etsy), or manufacture and distribute hand-made products such as candles, soaps, food, clothing, or furniture.

Coverages Relevant to Home-Based Businesses

Business Property

Most homeowner’s insurance policies have a sublimit of coverage for business property, which could be inadequate for your needs. Online retailers often keep thousands of dollars in inventory at home, and this inventory needs to be protected from theft, fire, or water damage.

Liability

If customers visit you in the home, for a hair stylist or consulting business for example, you need liability insurance in case they are injured while in your home. If you do any off-site work for your in-home business, such as repairing computers at your clients’ home or business, liability coverage can protect you if you accidentally damage their property.

Business Income

If you had a fire in your home that caused you to temporarily close your in-home business, this coverage would help minimize your loss of income during that time period.