Should I Insure My Home-based Business? 

Running a home-based business out of your home can be convenient; however, there can be risks involved when bringing business operations into your home.

Whether you’re a freelancer, consultant or crafter, having the right coverage can provide financial protection against unexpected events and liabilities.

Home-based Business Insurance Coverage

Running a business from home can expose you to certain risks, such as liability if clients visit your home or loss of business-related property not covered under a standard homeowners policy.

Without adequate insurance coverage, you would have to pay for costly incidents out of pocket. You may want to consider the following coverage options:

• Homeowners policy endorsement—Many homeowners insurance providers offer endorsements to extend your coverage. This option is for small-scale businesses with minimal risk, like freelancers or crafters, and can extend the homeowners insurance to include limited business activities. However, the endorsement typically doesn’t provide comprehensive coverage for physical products or in-person visits from customers or clients.

• In-home business policy—If you engage with customers or clients, own equipment or produce goods, an in-home business policy offers more robust coverage. This can typically be combined with your homeowners insurance for convenience but is often a separate policy. These policies may provide additional coverage for business assets, liabilities and business interruption.

• Business owners policy (BOP)—A more comprehensive option for businesses, a BOP can offer coverage for liability and property; however, your business must typically meet certain requirements, such as revenue or the number of employees, to obtain this type of coverage.

Learn More

Contact McCartan Insurance Group today to discuss your insurance portfolio. We can help ensure that your home and business are financially protected.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.