Insuring a Home-Based Business

Running your business out of your house feels informal, but the insurance gap it creates is very real. A standard homeowners policy simply wasn't built with business activity in mind, and the coverage it does offer for business use is usually far too limited to actually protect you.

Where the gap actually is

Most homeowners policies include a small amount of coverage for business property, often just enough for a basic laptop and some supplies, and typically no liability coverage at all for business activity. If a client visits your home and gets hurt, or your business operations somehow damage a neighbor's property, that's generally outside what your homeowners policy protects. For the full picture of that gap, see Do I Need Extra Coverage for a Home Business? from the homeowners side of this.

What actually closes the gap

A homeowners endorsement, for a simpler, smaller home business, can extend your existing policy to cover business property and liability without a completely separate policy.

A dedicated in-home business policy, a step up in coverage, built specifically for home-based businesses with more meaningful limits for equipment, inventory, and liability.

A full Business Owner's Policy (BOP), appropriate once your home business has grown to real revenue, meaningful inventory or equipment, or regular client visits. See Business Owner's Policy (BOP): What's Included? for what that includes.

How to know which level you actually need

This mostly comes down to three questions: how much business property and inventory do you actually have, does anyone ever visit your home for business reasons, and how much of your income depends on this business. A hobby that occasionally sells online looks very different from a full-time consulting or service business run out of a home office.

Don't assume your homeowners policy has this covered

This is one of the most common gaps we see, and it's invisible until a claim gets denied. Call Hall and Hall Insurance Services, tell us honestly what your home business actually looks like, and we'll get you covered the right way, not overpaying, not underinsured. Get your free quote today.