Do I Require Insurance For My Home-based Business?


Your entrepreneurial mindset and the aim to be your own boss have encouraged you to set up your home-based business. Great — but what next?

Insurance for your home-based business.

You might be surprised to know, home insurance does not cover most aspects of your business!  For example, the technology and equipment involved in your business are not covered by your homeowner’s insurance.

So, what are the various types of insurance options and coverages available, and in what case do you need them for your home-based business? Let’s find out!

You Need Business Property Insurance If …

You have electronics at home, for example, a computer storing business-related records

Furniture that you use for business purposes

Other pieces of equipment, such as a fax machine

This is essential because homeowners insurance does not cover losses for equipment that is used for business purposes. So, in the event of a catastrophe, any damages caused to your business-related items could incur heavy financial losses.

You can also consider commercial crime insurance to protect your equipment against losses caused due to theft.

You Need Liability Insurance If …

You have clients visiting your home-based business

You receive business deliveries frequently

Employees work at your business

In such cases, liability insurance will provide coverage for any damages done to the people visiting your home. For example, if an employee accidentally hurts himself, this insurance will protect your business from being liable for it.

If you hire employees at your home-based business, you may also want to look into workers’ compensation insurance.

You Need Product Liability Coverage If …

Your business manufactures product(s)

Your business supplies product(s)

Product liability coverage will protect your business from any damages caused (to people and properties) due to the products related to your business.

Some Home-Businesses That Would Love Insurance

You can analyze whether or not your particular business needs insurance, but here are four examples of businesses that would appreciate insurance policies:

Catering services



Goods sales

So, Do I Need Insurance For My Home-Based Business?

With diverse coverage options available, it would be a good idea to have a combination of insurance policies for your home-based business in place. 

These policies depend on the needs of your particular business. If you’re having a tough time shortlisting the right ones, get in touch with your insurance provider for personalized assistance!