Running a business from the comfort of your home can be a great way to save money and maintain flexibility. But if you’re assuming your homeowners insurance covers your business activities, you could be putting your business—and personal finances—at risk. Here’s what you need to know about home-based business insurance and why it matters.
1. Why Homeowners Insurance Doesn’t Fully Cover Home-Based Businesses
Most standard homeowners policies do not provide general liability coverage for business activities. That means if a customer, vendor, or delivery person is injured on your property during a business-related visit, you could be personally liable.
Homeowners insurance typically won’t cover:
- Business-related liability claims
- Damage to business equipment or inventory
- Loss of income due to business interruption
2. When You Need Home-Based Business Insurance
You should strongly consider this if:
- Clients or customers visit your home for meetings or services
- You store business-related inventory, equipment, or tools
- You use a portion of your home as a workspace for employees or contractors
- Your business relies on frequent deliveries or client interaction
Even if you operate quietly from home without visitors, you may still want coverage for your professional tools, electronics, or product stock.
3. What Does Home-Based Business Insurance Cover?
Coverage can vary, but generally includes:
- General Liability: Covers bodily injury or property damage if someone is hurt on your premises.
- Business Property: Protects equipment, tools, and inventory used for business purposes.
- Business Interruption: Reimburses lost income if your home-based business is disrupted due to a covered loss.
- Professional Liability: Optional coverage for service-based businesses that offer advice or consulting.
For a detailed overview of options, visit The Hartford’s Home-Based Business Insurance Guide.
4. Choosing the Right Policy
- Assess your risk: What type of business do you run? Do clients visit in person?
- Inventory your equipment: Ensure your valuable tools or tech are covered.
- Consult an insurance expert: Work with a provider who understands the unique needs of home-based businesses.
For personalized coverage options, contact Nebraska’s Insurance.
Conclusion
If you’re running a business from home, relying on your homeowners insurance could leave major gaps in protection. A dedicated home-based business insurance policy offers essential coverage that safeguards both your professional and personal assets.
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