What Insurance Do In-home Businesses Need?

Running an in-home business offers flexibility and convenience, but it also comes with unique risks. To help protect your business financially, having the right insurance coverage is essential.

Insurance for In-home Businesses

The following are types of insurance in-home businesses should consider:

• Homeowners insurance endorsement—Many homeowners insurance policies do not cover business-related claims. Adding a business endorsement to your existing policy can offer limited coverage for business equipment and liability. However, this may not be sufficient for all business needs.
• Business property insurance—This insurance can help financially cover the equipment, inventory and other business property located in your home. It typically offers coverage against risks such as theft, fire and select severe weather events. This coverage can be crucial if your business relies heavily on specialized equipment.
• General liability insurance—General liability insurance can help financially protect your business from claims of bodily injury, property damage and personal injury. For example, if a client visits your home and gets injured, this insurance may help cover medical expenses and legal fees.
• Professional liability insurance—Also referred to as errors and omissions insurance, this coverage is crucial for service-based businesses. It can offer financial protection against claims of negligence, errors or failure to deliver promised services. This is particularly important for consultants, freelancers and other professionals.
• Product liability insurance—If your business involves selling products, product liability insurance can be vital. It can help financially protect against claims of injury or damage caused by your products.
• Business interruption insurance—This insurance can assist in covering lost income and expenses if the business must close temporarily because of a covered event, such as severe weather. It helps ensure you can continue paying bills and maintain financial stability during such disruptions.
• Workers’ compensation insurance—If you have employees, even part-time or temporary, workers’ compensation insurance is typically required by law. It can help cover medical expenses and lost wages for employees injured on the job.

Learn More

Obtaining insurance coverage can financially safeguard your in-home business against potential risks and support its long-term success. Contact Willis Insurance to discuss your insurance portfolio today.

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.