Do I Need Extra Homeowners Insurance Coverage for My Home-based Business? 

As more people choose to work from home, understanding the insurance needs of your business while operating within the confines of your residence becomes crucial.

Whether you’re a freelancer, consultant or artisan, having the right coverage can help financially protect against unexpected events and liabilities.

Will Homeowners Insurance Cover My Home-based Business?

Homeowners insurance typically covers personal belongings, but limitations and exclusions may apply regarding potential business-related losses. The following can be fundamental limitations of a standard homeowners policy:

• Limited coverage for business assets—Homeowners insurance generally covers personal belongings, but it may have limitations when it comes to business-related assets like equipment, inventory or tools.
• Liability gaps—When a client or customer visits your home for business purposes and sustains an injury, your homeowners policy may not cover resulting losses. For business-related liabilities, it may be essential to consider a specialized policy.
• Business interruption—If your home-based business undergoes a temporary shutdown due to a covered peril (such as fire or severe weather), a standard homeowners policy may not cover lost income. It may be essential to consider additional coverage for business interruption.
• Professional liability—If your home-based business offers professional services or advice, a homeowners policy might not cover errors, omissions or negligence claims. In such cases, having professional liability coverage becomes crucial.

Do I Need Extra Insurance for a Home-based Business?

The insurance needs for home-based businesses can vary significantly based on the type of business. Consider the following insurance options:

• A homeowners policy endorsement can help enhance your existing homeowners insurance and may be a good fit for small home-based businesses that don’t engage in manufacturing goods.
• An in-home business policy can conveniently combine home and business insurance into a single policy. It’s particularly well-suited for businesses that engage with clients, own equipment and produce output.
• A business owners policy can offer coverage for liability and property. However, eligibility for this type of policy depends on specific prerequisites that a home-based business must meet.

Homeowners and Business Insurance in Beaumont, TX

Contact Miller Insurance Agency today to discuss your situation with our team and determine the best coverage for your home and business. We can help ensure you have adequate homeowners insurance coverage to confidently operate your at-home business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.