Home Based Business Insurance

Many people think their homeowners policy is all they need. But a typical homeowners policy may not provide enough coverage. The usual limit is $2,500 for your business equipment while at home and $250 when it’s off the premises.

Most homeowners policies specifically exclude business liabilities. Even though your at-home business may involve only yourself working just part time, you could still have liability risk. For example, someone may come to your home for a business purpose–such as delivering materials–and sustain an injury on your premises for which they believe you are responsible. Your homeowners policy would probably not cover the damages.

Endorsement to Your Homeowners Policy - Your homeowners insurer may offer an endorsement to your homeowners policy that adds additional property coverage and some limited liability coverage.

In-Home Business Insurance Policy - Some insurers offer specific in-home business insurance policies with some of the same features as larger commercial policies but with lower policy limits and at a lower premium.

Should you have to shut down your business because of damage to your house, the in-home policy will cover the income the business loses and ongoing expenses, such as payroll, for up to one year. The policy also provides limited coverage for loss of valuable documents, accounts receivable, offsite business property and use of equipment.