Do I need business insurance if I work from home?

Home Business Insurance
3 minute read  

If you’re running a business from home, you’re probably wondering whether you need business insurance or not. While it’s true that working from home eliminates some of the risks that come with traditional office spaces, your standard home insurance policy may not cover the common risks that business owners can encounter.

For instance, your standard home insurance policy may not cover damage or theft of business inventory or equipment. The worst part? If your home insurance provider is unaware of your business, they might not even cover the damages to your home in the event of a disaster.

That’s why it’s important to have the appropriate business insurance coverage to protect your business and financial well-being.

What is home-based business insurance?

Home-based business insurance protects individuals who operate a business from their home. A home-based business insurance policy may cover damage to your business property, business liability claims, and other risks associated with running a business. A homeowner’s policy will likely provide no coverage or very limited coverage for risks associated with running a business.

Potential risks for home-based businesses

Running a home-based business is a rewarding journey. Moreover, it offers you flexibility and the opportunity to be your own boss. However, you should also be aware of the potential risks that come with this type of business setup, such as:

Inventory gets damaged or lost

Any products you sell should be stored in a safe and secure place in your home, with theft attractive items like fashionable clothes or expensive bags, needing extra special attention.  However, unexpected events like fires and floods can severely damage your inventory. Also, leaving your premises unsecured or inadequately secured makes it easier for thieves to steal your inventory or other business contents.

Customer or visitor gets injured

If you run a home-based business, you’re probably having regular visitors. This can increase the chances of accidents happening. What’s worse is that these accidents can lead to expensive lawsuits. For example, a customer could trip over a rug in your home, or a supplier might slip and fall on your icy front steps. These slip, trip, or fall accidents can be very costly for you and your business.

Natural hazards

Disasters like wildfires and storms can happen with little to no warning and your standard home insurance policy likely won’t help cover any of the damage costs, your lost business income, or ongoing business expenses.

What does home-based business insurance cover?

Homeowner’s insurance may not provide sufficient protection for your business, so it’s crucial to consider home-based business insurance, which can include coverages such as:

Commercial liability

Commercial liability insurance can help protect you if your business is found legally responsible for causing harm or damage to someone else. For instance, if a customer is injured in your home, this insurance may help cover the costs of any legal fees and any compensation you have to pay the injured customer.

Professional liability

Professional liability insurance can help protect professionals who offer paid services from expensive lawsuits brought by their clients, such as lawsuits that claim that your error or omission was responsible for causing them to suffer a financial loss.  Including this coverage on your business insurance policy, will help provide you with the protection you need.

Commercial property

Commercial property insurance can help protect your business equipment or inventory if they are damaged or lost. Moreover, if the business owns one or more buildings, this form of insurance may also cover things on your business premises, such as outdoor signs, fencing, and landscaping.

Business interruption

If you suffer from a disaster and your home needs extensive renovation or repairs, you may need to close your business. This could result in a loss of business income. Business interruption insurance can help you recover lost business income and cover ongoing expenses like employee payroll, property taxes, and alarm monitoring.

Do you need home-based business insurance?

Obtaining home-based business insurance can give you peace of mind, knowing that your business is safe from unforeseen events. It can help you recover financially and continue operating your business smoothly following a disaster or lawsuit. Moreover, many clients and customers may require proof of insurance before doing business with you.

Remember, accidents and unforeseen events can happen to any business, regardless of size or location. Taking the necessary steps to protect your home-based business with insurance can provide security and confidence, so you can focus on growing your business without worrying about potential risks.

Protect your home-based business with TruShield Insurance

Running a business from home may seem like a low-risk endeavor, but that’s far from the truth. If you don’t have the right insurance coverage, you can face significant financial losses. Our home-based business insurance protects you from unexpected events that could jeopardize your business and personal assets. To learn more, visit our Home-Based Business Insurance page today.


This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.