What Insurance Do I Need If I Start a Home-Based Business?
Running a business from home has never been more popular. Whether you’re crafting products for an online shop, consulting with clients, or offering specialized services, it’s tempting to assume your homeowners insurance will cover your new venture. Unfortunately, that’s usually not the case. Home-based businesses have unique risks that require tailored insurance protection.
Why Homeowners Insurance Isn’t Enough
Most homeowners insurance policies provide little to no coverage for business activities. That means:
Your business equipment may not be protected against theft, fire, or damage.
Liability from customers visiting your home is not covered.
Lost income from an unexpected event is excluded.
Without additional protection, you could face significant out-of-pocket costs if something goes wrong.
Key Coverages for Home-Based Businesses
Here are the most important types of insurance to consider if you’re running a business from home:
1. Business Property Coverage
Standard homeowners policies may only cover a small amount of business property — often as little as $2,500. If you rely on computers, specialized equipment, or inventory, you’ll need additional coverage to protect these items.
2. Liability Insurance
If a client or delivery person gets injured while visiting your home office, your homeowners liability won’t apply. Business liability coverage can protect you from lawsuits, medical costs, and legal fees.
3. Business Interruption Insurance
If a fire, storm, or other covered event forces you to stop operations temporarily, business interruption insurance can help replace lost income and keep your business afloat.
4. Professional Liability Insurance
For consultants, coaches, or service-based businesses, professional liability insurance covers claims of errors, negligence, or failure to deliver services as promised.
5. Commercial Auto Insurance
If you use your personal vehicle for deliveries, client visits, or transporting supplies, your personal auto policy may not cover accidents that occur while conducting business. A commercial auto policy ensures you’re protected.
Additional Options for Extra Protection
Depending on your type of home-based business, you may also want to explore:
Cyber Liability Insurance to protect against data breaches and online fraud.
Product Liability Insurance if you manufacture or sell goods.
Workers’ Compensation Insurance if you have employees working from your home.
These coverages can be customized to fit your business’s unique needs.
How Hixson & Malinowski Insurance Can Help
At Hixson & Malinowski Insurance, we understand that home-based business owners want to focus on growth, not risk. Our team can:
Review your homeowners policy to identify gaps in business coverage
Recommend tailored insurance solutions that fit your budget
Shop policies from multiple carriers to find the best protection
Provide support when it’s time to file a claim
Conclusion
Starting a home-based business is exciting, but it also comes with risks that homeowners insurance alone won’t cover. From liability to business property protection, the right coverage ensures your business is secure. Contact Hixson & Malinowski Insurance today to discuss your options and build a policy that supports your success.
