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Does your home insurance cover your home-based business?


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Even when we dream big, we often have to start small. Many major companies had humble beginnings. For instance, when Steve Jobs founded Apple, he set up company headquarters in his parents' garage! If you're launching a business or are self-employed, it's likely you're working out of your home, too.

It's easy to assume that the work-related activities taking place in your home are automatically covered by your home insurance. But is that really the case?

What does home insurance cover?

Personal-use movable property is the primary coverage provided by your home insurance, regardless of whether you are a tenant or a homeowner. Some commercial property kept at your house may be covered by your policy, but goods, computers, or specialty equipment may not always be.

Liability is the same; your home insurance covers you in the event that a third party is hurt physically or has property damaged, but not if the incident happens while you are conducting business. For instance, basic home insurance coverage might not shield you from legal action if you are an accountant working from home and one of your clients trips and falls while retrieving his tax return.

What are your options?

There are two types of coverage for home-based businesses:

1. Coverage for home-based workers added to your home insurance

This inexpensive choice is perfect for independent contractors and small enterprises that run out of homes. This coverage includes liability resulting from the use of the premises as well as $10,000 to $50,000 coverage for commercial property.

2. Separate coverage for your home-based business

Business insurance provides more comprehensive coverage that can cover your company's building, inventory, equipment, furnishings, and other assets as well as liability, operating losses from disruptions in business operations, and privacy violations.You will be safeguarded in the event that a casualty or error that arises during the course of your professional operations results in bodily injury or monetary losses if you supplement the preceding coverage with errors and omissions coverage. The most adaptable choice is business insurance, which can be customized to meet your company's demands and guarantee protection in every scenario.


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Does your home insurance cover your home-based business?