coverage for your home business

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home business insurance

OverviewCommercial propertyGeneral liabilityErrors & omissionsHome business optionsCommercial auto coverage

What is home business insurance?

Home business (or home-based business) insurance policies cover unexpected, costly claims associated with running your business out of your home.

Who needs business insurance for their home business?

If you run a business primarily out of your own home, it is recommended that you carry business insurance, especially under the following circumstances:

  • Customers come to your home.
  • Property damage to your home could interrupt your business.
  • Professional equipment, supplies, inventory and/or files are kept at home.
  • Employees working out of your home.

Some examples of home-based businesses that can benefit from business insurance are:

  • Accountants
  • Beauty professionals
  • Florists
  • Home bakers
  • Designers
  • Jewelry and craft retailers
  • Photographers
  • Tailors
  • Event entertainers

Types of home-based business insurance coverages

When your business is managed out of your home, it’s important to have the right protection for yourself and your livelihood. Take a look at some of the home business insurance and see which ones are right for you.

  • Commercial property

    Helps protect your business if company property is damaged.

  • General liability

    Protect your company from claims like injury, client lawsuits and more.

  • Commercial auto

    Coverage designed to protect company vehicles and drivers.

  • Errors & omissions (E&O)

    If accused of errors, omissions, negligence or faulty advice, an E&O policy helps cover legal expenses and settlements.

  • Equipment breakdown

    Takes care of expenses to repair or replace equipment after a covered incident.

  • Business interruption

    Recovers lost income and additional expenses resulting from a covered claim.

Protect what keeps you in business

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What can insurance cover for home-based businesses?

Coverage can vary depending on the specific type of business insurance you have selected, including:

  • Property damage
  • Auto claims
  • Lawsuits
  • Employee injuries
  • Mistakes or errors
  • Issues related to data loss

Here's how business insurance can help

For example, if a customer slips and falls during an appointment, business insurance can protect an in-home salon from expensive claims.

That customer’s injuries would NOT be covered under a homeowners policy. That’s where a general liability policy would come in to cover any costs resulting from injuries at the home-based business.

Home business insurance FAQs

Without home-based insurance, you would be held responsible for any losses that your business incurs.

We recommend checking local state requirements and contacting your agent to learn what is required by law.

Carrying insurance policies regardless to cover business claims is a great way to protect your company, as what is legally required may vary.

Not every homeowners insurance policy provides coverage for business property and, even if yours does, the coverage limits may not be high enough to protect it.

We suggest having a separate insurance policy to cover any business-related claims.

If you have employees, we suggest contacting your agent to make sure you choose the right coverage.

We recommend insuring tools and equipment you use to run your company under a business policy as they may not be covered under a homeowners policy.

Yes, you can add business interruption coverage to your business insurance package.

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