Home-Based Businesses: Including Your Business In Your Home Insurance

If you have a home-based business or you frequently work from home, having both your office space and the business itself insured is an essential part of your overhead as an entrepreneur or business person.  One option that you may be considering is including your business as part of your home insurance.  While it may save you money in keeping your business investments and capital protected, it may not be enough in some cases.  So is home insurance the right choice for your home-based business?  Here are a few things to consider before shopping around for a separate business insurance policy.

What Does Homeowner’s Insurance Cover?

The coverage you receive from your homeowner’s insurance will depend on your policy, but in general it protects your home in case of damage or loss from a number of causes, and will usually include both the property itself and the contents.  Before deciding whether you need separate business insurance for your home-based business you will want to take a close look at your existing homeowner’s insurance policy.  If your contents are not covered, or the contents of your home office are not included in the policy, you will need to either extend your existing coverage or get a separate policy to include items such as your computer and office furniture.  Depending on the type of home business you run, however, this may not be enough to keep your business fully covered.

What Type of Insurance Does a Home Business Need?

One of the biggest considerations in deciding if you will need separate business insurance for your home-based business is whether the issue of liability will ever come up.  If clients enter your home for any reason or you have frequent business-related deliveries to your home, your homeowner’s insurance will not cover any injuries these people may receive on your property.  Also, if you have any employees, even if they work only a few hours here or there, you will need insurance to cover them.

If you run a home-based business your best choice in keeping both your home and your business covered is to talk with an insurance professional and discuss your particular situation.  Your business is your livelihood and your property is your home; ensuring that they are both covered should anything happen is important to both you and your family.


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