Is there specific insurance for home-based businesses?

Many enterprises start as home-based businesses — just like some of today’s globally renowned brands, including Google, Nike, Hewlett Packard, Microsoft, Subway and LinkedIn.

Low start-up costs, flexibility, tax advantages and the absence of a commute are just a few benefits of running a home-based business.

Now, the question that many home-based business owners find themselves asking sooner or later is whether running their operations from home requires insurance. Is there specific insurance for home-based businesses? What protection does it provide?

So, do you need insurance?

A home-based enterprise, like any business, needs insurance.

Although you may have a mindset that nothing could go wrong when you’re running something so small, there are always risks because you can’t control everything.

No matter how hard you try to cover the basics and account for all processes, details and information, accidents can and do happen. Your cash flow will be quickly depleted by incidents like flooding, storm damage or fire accidents that can result in high medical costs and inventory problems.

A wide range of home-based enterprises can benefit from home business insurance significantly, such as:

  • Child care or family day care providers: Anyone operating a home day care should always consider getting home business insurance. With tiny tots running around and stumbling about, one can anticipate bumps, scratches and falls. However, you also need coverage for the unlikely event that something more serious occurs, and this is where home business insurance can help. Also, with property coverage, your possessions are protected in case an overactive child accidentally damages a pricey item in your home.
  • Contractors: Your house insurance probably does not cover your tools and equipment if you operate from home as a contractor. Your homeowner’s insurance likely won’t pay for the cost of replacement if your house is broken into and your tools are taken. Home business insurance can cover you whether you’re a contractor or working as a consultant with a costly computer and other gear.
  • Aestheticians: Working in the beauty industry allows for the convenience of running your business from home. However, it also comes with risks, whether you’re a hairstylist, massage therapist or aesthetician. Aside from providing coverage for your expensive tools and devices, home business insurance can protect your business in case injuries involving your equipment happen. This way, in the event of an accident, you won’t have to pay out of pocket.

No matter what kind of business you run, it’s always a good idea to get home-based business insurance coverage to safeguard both you and your clients. Home business insurance covers your responsibility in case of an accident or injury or when your physical assets get damaged or stolen.

Business owners actually have a variety of insurance options to choose from.

Speak to an insurance advisor to find the kind of coverage that best suits your situation and requirements.


If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.

(Feedsy Exclusive)


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