Business Insurance for Home-based Businesses

Working from home has become a prevalent workplace trend since the COVID-19 pandemic. This shift has also enabled many small businesses to operate their companies entirely from a residence. However, while these new business locales may be convenient, they also impose a unique and nuanced set of risks and exposures.

At Insurance Tigers LLC in Las Vegas, Nevada, we understand the insurance needs of home-based businesses and are eager to share our insight with companies and their leaders.

How Is Insurance Different for Home-based Businesses?

It’s important to understand that standard homeowners insurance cannot usually be relied on to provide adequate coverage for your home-based business. In many cases, your homeowners insurance may exclude incidents involving business-related activities. Even if such situations are covered, a standard policy typically includes strict coverage limits regarding business-related property.

Additionally, operating a business from your home often requires you to consider additional types of policies you might not otherwise have needed. For example, while a homeowners insurance policy often includes personal liability coverage for you and your family, this may not apply to third-party losses arising from your business’s activities. In this case, you should consider purchasing additional liability coverage, such as general liability or professional liability insurance.

How to Get Insurance for a Home-based Business

Several approaches may be available as you seek to insure your home-based business adequately. Consider the following options:

• Homeowners insurance endorsements—While standard homeowners insurance will not likely cover business-related losses, you may be able to add an endorsement to your coverage that can fortify your policy. For example, you may be able to establish or increase coverage for company property, such as electronics and inventory. Similarly, you might also add a liability endorsement in case people visiting your home-based business are injured.
• In-home business insurance plans—These policies are often more readily available than homeowners insurance endorsements and may provide more robust and versatile coverage. For instance, they may cover a greater variety of business property, including belongings stored off-site. They may also include coverage for lost income following a covered disruption of normal operations, as well as liabilities for products and services you provide.
• Business owners policies—Also known as a BOP, this type of insurance product may help you secure several key types of coverage under a single policy. BOPs typically include general liability insurance, commercial property insurance and business interruption insurance, meaning you can financially protect yourself from liabilities, losses involving your own assets and damages arising from delays, all under a single, cost-effective arrangement.

Learn More

Contact the dedicated team at Insurance Tigers LLC to learn more about insuring your home-based 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.