Home-Based Business Insurance: What You Need to Know

by | Nov 17, 2022 | Commercial Insurance

Are you considering joining the growing number of entrepreneurs with a home-based business?  If so, it is extremely important to become familiar with what kind of insurance you should get.

Even though you can run your business from the comfort of your home wearing your slippers, your business still needs to be insured just like any other brick-and-mortar company.

Do I Need Home-Based Business Insurance?

When you run a company out of your home or on the property, home-based business insurance can cover paying out property damage, injuries related to the business, employee injuries, and lawsuits. That’s why it is crucial to make sure you have enough insurance coverage to protect the business equipment.

Since homeowner’s insurance may not cover business needs, home-based businesses might require small business insurance to make sure the business property is adequately covered.

3 Basic Options When Insuring Your Home-based Business

Add an endorsement to your homeowner’s policy

Home insurance companies typically offer simple endorsements that can be added to your standard homeowner’s policy to get more home-based business coverage.

You can also buy a homeowner’s liability endorsement to cover clients or delivery people who may get hurt on the property.

Although, this is typically available only to businesses that have few business-related visitors or students, such as writers and piano teachers.

An independent in-home business policy

This policy provides more comprehensive coverage for business equipment and liability than a homeowner’s policy coverage. It is good for businesses that have visitors coming and going.

In addition to the business property, it also covers off-site property and important documents. Some policies also offer coverage for temporary income loss due to disasters, such as fire.

A business owners policy (BOP)

This policy could be an excellent solution if your home-based business operates in multiple locations. A BOP covers business property and equipment, loss of income, extra expense, and liability, but it does not include workers’ compensation, health, or disability insurance.  You will need separate policies for these coverages if you have employees.

The type of coverage you will need for your home-based business will depend on your business or industry. Every business is unique, which is why TSL Insurance Group offers a variety of coverage options to meet the needs that are right for your home-based business. Even the smallest business can help protect itself from the unexpected.

6 Types of Home-Base Business Coverage

Business property insurance

You need business property insurance to cover any kind of equipment to conduct your home-based business, such as a computer, a printer, and furniture, in the case of flood or fire since your standard homeowner’s insurance doesn’t typically cover them.

Broader business liability insurance

For higher amounts of coverage, broader liability insurance may offer protection against lawsuits for injuries caused at your location.

Loss of income coverage

This replaces lost business income after extreme property damage to provide the money needed, such as payroll.

Product liability coverage

Product liability coverage will help protect your business from any damage to a person or property caused by a product you supplied or designed.

Business automobile coverage

If you use your automobile for business activities such as transporting supplies or visiting customers, you should make sure that your automobile insurance will protect you from accidents that may occur while you are on business.

Other insurance coverages

Depending on your business type, you may also need special coverage, such as data compromise and employment practices. Data compromise coverage protects your company from security breaches that may expose confidential client information.

Employment practice coverage protects you against claims brought on by employees, former employees, and employment candidates.

As a property and in-home business owner, it is vital to be certain you are properly covered, so the future of your business is not at risk. TSL Insurance Group offers insurance that is tailored for different types of businesses.

See also: Why Your Small Business Needs Insurance This Holiday Season 

If you are working to build a home-based business and need a trusted provider to make sure you are fully protected, contact TSL Insurance Group today to receive commercial insurance quotes.

Our highly skilled and dependable insurance advisors will work with you to find coverage that sure protects the stability of your business.

Don’t be the one who made the mistake and was not prepared. Contact us today by filling out the form below!