Home business insurance

Many business owners start off working out of their home - even Apple founder Steve Jobs started in his garage! Where you start may not be the most interesting part of your origin story, but no matter the location, it’s important to have the right insurance if you’re operating a business from your home. Keep reading to learn more about what home business insurance is, what it covers, and who needs it.

What is home business insurance?

Home business insurance offers coverage for people who run a business from their home. Personal home insurance will likely not cover losses experienced by a home-based business.

Home business insurance can cover your equipment, inventory, business interruption and most importantly, liability. There are other coverages that can be customized to your home-based business that you can learn more about through an insurance broker.

More people than ever before are working from home. Note that you don’t need home business insurance if you are working from home as an employee, it’s only something you need to consider if you’re owner of a business you’re running from your home.

Why do you need home business insurance?

Small home businesses face risks just like any other business. Your equipment could be stolen, your inventory could be damaged or someone coming to your home for business purposes could slip and fall and decide to sue you. If any of these situations occur, your business insurance can provide the protection you need.

Here are a few examples of the different ways home business insurance can help protect you:

Liability protection

Whether you’re a small at-home business or a large corporation, general liability coverage is very important. It provides protection against common incidents including bodily injuries, property damage, and advertising injuries. Consider the costs you could face if you were sued - would you be able to cover the legal fees out of pocket? Legal fees add up quickly and many small business owners may not be able to cover it themselves.

Equipment protection

If you have a small home business, you might have built up your equipment slowly over time, spreading out the expense. Imagine if you had to replace everything at once because it’s damaged or stolen. It could be difficult or impossible on your own. Having home business insurance can help cover damage and loss for your:

  • Computer
  • Software
  • Filing cabinets
  • Inventory and stock

Business interruption coverage

If your home is damaged or inaccessible and you cannot work from there, you could lose out on income you were expecting. In this case, having business interruption coverage as part of your home business insurance coverage may compensate you for this loss.

Common home business insurance coverages

Not all home business insurance plans are the same. Your insurance broker will be able to create a plan that’s customized to fit your needs. Each plan will vary, but here are a few of the most common coverages available:

Get a home business insurance quote with BrokerLink

If you’re looking for home business insurance coverage, talk to a BrokerLink insurance advisor. They are insurance experts who will take the time to get to know you and your business and answer any questions you have.

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Home business insurance FAQs

What type of insurance does my home business need?

That depends on the type of business you’re running from your home. Different businesses have different insurance needs. Talk to an insurance broker for a quote for your specific circumstances.

What types of home businesses should be insured?

Whether or not you need insurance for your home business depends on a few factors. If you’re baking cookies and selling them to friends to cover the cost of supplies, you probably don’t need home business insurance. However, if you’re selling large quantities of cookies, you have employees, and you have expensive baking equipment, it might be time to invest in insurance. If you are unsure if your home business requires insurance, talk to an insurance broker. They’ll take the time to understand your unique circumstances and they’ll make a recommendation that makes sense for you.

How much does home business insurance cost?

The cost of home business insurance depends on many different factors. Your broker will ask you what type of business you operate, how many employees you have, your expected revenue, whether you need to drive as part of your business, and if you have any history of claims. All these things and more affect how much your home business will cost.