Key Considerations for Insuring Your Home-based Business

Operating your business from home can offer many advantages like flexibility and work-life balance, but it can also present challenges when it comes to securing the right insurance.

What Types of Insurance Do Home-based Business Owners Need?

Business owners operating from their homes should consider the following types of insurance:

• General liability insurance—Liability risks for home-based businesses may be similar to those of larger organizations. This insurance can provide financial assistance for incidents resulting in legal expenses and financial losses.

• Business interruption insurance—Just as natural disasters can affect a large company, they can negatively impact home-based businesses. This insurance can help pay for various ongoing expenses and lost income.

• Business property insurance—Your homeowners insurance policy may not cover equipment you use for your business or business-related incidents. This insurance may cover your business assets in your home.

• Business owners policy—This insurance, also known as a BOP, is intended for small- to medium-sized businesses because they typically bundle coverages, such as general liability, business interruption insurance and business property insurance.

Coverage Gaps and Other Considerations

Traditional insurance policies, such as homeowners insurance, may not provide adequate coverage if you run your business from home. While home-based businesses may be viewed as less formal than larger ones, they may face the same risks. For example, you may benefit from cyber liability insurance if you handle clients’ sensitive data online. You may also need to consider special policies or riders if you use expensive manufacturing equipment to produce inventory in your home.

It’s important to consult an insurance professional to learn what policies will best suit the needs of your home and business.

Contact Us

At Hope Financial Depot, we make finding affordable insurance easy. Contact us today for a quote or to speak to someone about your unique business needs.

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.