Whether you have an Etsy shop or run a full-time consulting business, you might want to consider the advantages of home business insurance. Most homeowner’s insurance policies don’t cover business-related losses, which means a disaster could jeopardize your income and assets. The right insurance will protect you financially and give you peace of mind.
Which Businesses Need Home-Based Business Insurance?
Maybe you’re wondering if you need home business insurance in the first place. If you run a business out of your home (a full-time job or a side hustle), you should at least consider purchasing home-based business insurance. Some common businesses that should purchase coverage include:
- Freelancers (writers, graphic designers, consultants)
- Online sellers (Etsy, eBay, Amazon)
- Daycare providers
- Photographers
- Accountants and bookkeepers
- Personal trainers and yoga instructors
- Hairstylists or nail technicians
- Professional pet boarders
10 Home Business Insurance Options
When it comes to insuring your home business, various coverage options are available.
1. Homeowner’s Insurance Endorsement
The most common option for work-at-home jobs is to purchase an endorsement or rider for your homeowner’s insurance policy. This add-on offers additional coverage for business property and liability claims related to your business operations. It’s a cost-effective option for smaller, low-risk businesses.
2. General Liability Insurance
If your home business involves in-person client meetings or services at a client’s location, you might want to consider general liability insurance. This policy protects you in case of property damage, bodily injury, or advertising injuries—such as copyright infringement—related to your business.
3. Business Owner’s Policy (BOP)
A business owner’s policy combines both general liability and property insurance into one comprehensive package. It covers property damage, equipment breakdowns, and liability claims. If your business has more significant risks or assets to protect, a BOP may be the best option.
4. Professional Liability Insurance
Also known as errors and omissions insurance, this home business insurance is essential if you provide professional services and advice. It protects you from lawsuits from clients claiming financial losses due to mistakes or negligence.
5. Business Property Insurance
If your business has expensive equipment or inventory, you may want to purchase separate property insurance. This coverage protects against loss or damage from unfortunate events like fire, theft, and natural disasters.
6. Commercial Property Insurance
If you use a physical location outside of your home, commercial property insurance protects the building and its contents. It also covers liability claims related to the property.
7. Business Interruption Insurance
If your home business is affected by a disaster or forced to shut down temporarily, business interruption insurance can help cover lost income and ongoing expenses.
8. Commercial Umbrella Insurance
Umbrella insurance provides additional liability coverage beyond the limits of your other policies. It’s especially important for high-risk businesses or those with substantial assets.
9. Cyber Liability Insurance
If your home business stores sensitive customer information or conducts financial transactions online, you should consider cyber liability insurance. This policy protects against data breaches, cyber-attacks, and other technology-related risks.
10. Commercial Auto Insurance
If you use a vehicle for business purposes, your personal auto insurance will not cover accidents that occur while using the vehicle for business. Commercial auto insurance is necessary to protect your business from any liability claims in these situations.
Questions to Consider Before Purchasing Home Business Insurance
There are a lot of coverage types to choose from. If you need help deciding which home business insurance is best for you, use the following questions as a guide:
- What risks does my business face?
- Do I have valuable business assets or inventory stored at my home?
- Do I provide professional services or advice that could result in financial loss for clients?
- Will I be meeting with clients at my home or their location?
- Do I store sensitive customer information or conduct business transactions online?
Partner With Bethany Insurance Agency For A Customized Policy
At Bethany Insurance Agency, we specialize in creating custom insurance solutions for home-based businesses. Our professional agents will work with you to determine the right coverage options and limits for your unique situation. Contact us today to get started!