How can you tell if your home-based business is covered?

Are you covered by your home insurance policy?

The best way to find out is to contact your insurance broker. While most home insurance policies include some coverage for business property, that protection is often limited. Adding a home-based business endorsement to your homeowners insurance may therefore be worthwhile. This type of coverage can protect business property used at home, typically for amounts ranging from $10,000 to $50,000, and may also include liability protection.

Is business insurance right for you?

Do you need broader, more flexible coverage tailored to your specific operations? If so, a commercial insurance policy may be the better choice. Business insurance can cover every aspect of your operation, including your building, furniture, equipment, inventory, business interruption losses, privacy breaches, and commercial general liability.

Do you need liability insurance?

Liability coverage can be extremely valuable, especially if you receive clients at your home. It helps cover costs related to bodily injury or property damage suffered by third parties (such as your clients) on your business premises (your home) or resulting from your products or services.

For example, if a client slips on your icy driveway while picking up an order and decides to sue you, your liability insurance could help cover legal and related expenses.

Should you protect yourself against errors and omissions?

For even greater protection, you may want to consider professional liability insurance, often referred to as errors and omissions (E&O) insurance. This coverage protects you against claims arising from mistakes, negligence, or professional oversights that result in financial losses or bodily injury.

It can be particularly valuable if you work in a profession where lawsuits are more common, such as law, accounting, architecture, engineering, consulting, or other professional services.