How to Insure Your Home-Based Business Without Gaps in Coverage
Key Takeaway
Running a business from home doesn’t mean you’re automatically covered by your homeowners insurance. In most cases, home policies exclude business-related risks—leaving your equipment, inventory, and liability exposed. The right insurance strategy fills those gaps and protects everything you’re building.
Why Your Homeowners Insurance Isn’t Enough
Most homeowners policies are designed to cover personal property and liability—not business operations. If you experience a fire, theft, or customer injury related to your home business, your standard policy may deny the claim.
Common exclusions include:
Business inventory stored at home
Computers or equipment used for work
Liability for customers or clients visiting your home
Loss of business income due to damage or interruption
Without proper coverage, a single event could set your business back significantly.
What Kind of Insurance Does a Home-Based Business Need
1. Business Property Coverage
Protects your work equipment, tools, furniture, and supplies. This includes computers, printers, inventory, and anything else used for business purposes. Coverage can be added through an endorsement on your home policy or a standalone business policy.
2. General Liability Insurance
Covers third-party injuries or property damage related to your business. If a client trips and falls during a visit to your home office, this coverage helps with medical bills and legal costs.
3. Professional Liability Insurance
If your home business provides services or advice, this protects you against claims of negligence or errors—even if you work remotely or virtually. It’s especially important for consultants, designers, coaches, and other service professionals.
4. Business Interruption Coverage
Helps replace lost income if a covered event (like a fire or storm) makes it impossible to work from home. This ensures you can continue to pay bills and meet obligations while you recover.
5. Cyber Liability Insurance
If your business handles customer data, email marketing, or online transactions, cyber coverage protects against data breaches, hacks, and ransomware attacks.
6. Commercial Auto Insurance
If you use your personal vehicle for business tasks—such as deliveries, meetings, or transporting supplies—you may need commercial auto coverage to stay protected.
Options for Getting Covered
Homeowners Policy Endorsement
A simple and affordable way to add basic business protection. Best for low-risk businesses with limited equipment or visitors.In-Home Business Policy
More robust than an endorsement, this option is ideal for businesses with higher inventory, more liability exposure, or occasional customer visits.Business Owner’s Policy (BOP)
A complete solution that bundles property, liability, and business interruption coverage into one policy. Perfect for home-based businesses with moderate to high risk.
Questions to Ask Your Agent
What does my current homeowners insurance exclude?
Do I need a separate business policy?
What’s the best coverage option for my industry?
Can I bundle business and personal policies for savings?
The experts at Andrade Mejia Insurance Agency can review your current setup and recommend coverage tailored to your unique situation.
Final Thoughts
Just because you work from home doesn’t mean your business is protected. The right insurance plan ensures that a fire, lawsuit, or data breach doesn’t jeopardize your income or assets.
Protect your home business with confidence. Contact Andrade Mejia Insurance Agency today to explore affordable, customized coverage for the way you work.