Do I Need Insurance For My Home Business?

When your house is also your workplace, homeowner’s or renter’s insurance is often not enough to cover you against all eventualities. For instance, such policies will not provide you with liability coverage if a person is injured while visiting your home on a business matter and will only cover equipment and inventory losses up to $2,500.

For sufficient coverage, you need to expand your insurance to encompass the activities of your home-based business.

Insurance For A Home-Based Business

Depending on the extent you want your coverage to reach, you can choose from one of the following three options:

1. Upgrading Homeowner’s Insurance

If you require only a little extra coverage, you can simply upgrade your current homeowner’s insurance. For example, you use this to cover equipment and inventory worth up to as much as $10,000 and even add a liability endorsement to your policy, provided you only receive very few visitors to your home for business reasons.

2. Taking Out an In-Home Business Policy

If business equipment and inventory in your home has a higher value, if you receive frequent visitors, or if you have employees working for you at home, you will need to purchase an in-home business policy. This will also provide you with additional coverage for any off-site property, the loss of important documents, accounts receivable, and, in some cases, the loss of income due to a disaster that prevents you from running your business.

3. Opting for a Business Insurance Policy

If the above falls short, your final option is a standard business owner’s policy – the same as you would purchase if your business was located in a separate building from your home. This is the most comprehensive type of insurance available and can protect both you and your employees against a range of losses, including theft, liabilities, embezzlement, fraud, and suspension of business activities due to damage.

Will This Affect My Homeowners Insurance?

Depending on the situation, this very likely could effect the eligibility of your homeowners insurance, and could results in claims not being paid, particularly if you see a lot of visitors or foot traffic. And that’s even if you have a separate policy just for your business! For example, if you are a dentist and your see customers in your home, this could very likely invalidate your homeowners insurance policy as it’s not properly set up to handle a commercial business exposure. We had a customer whose current homeowners company decided to cancel their policy because the company found out that they had a dentist office in their home.


It can be difficult to know which type of in-home business insurance would be right for you without first consulting with an expert. Fortunately, our team at George A. Bell & Son has the experience and expertise to protect you from potential financial losses. Contact us for further advice about how to protect your home-based business from theft, liabilities, damage, and more.