What Insurance Do I Need for My Home Business?

There are more people working from home these days than ever. If running a business from the comfort of your own home, it’s important to recognize that there are potential risks and liabilities involved. You might ask, “What insurance do I need for my home business?”

Home-based business insurance provides coverage for a range of situations that may arise in the course of operating your business from your home. This includes coverage for your business equipment, such as computers, printers, and specialized tools. In the event of theft, damage, or loss of these items, having insurance can help you recover the costs and continue your operations smoothly.

Liability protection is another key aspect of home-based business insurance. In the unfortunate event that a client or visitor is injured on your property, this insurance can help cover the costs of medical bills and legal expenses. This type of coverage can protect you from potentially devastating lawsuits.

If your business involves providing professional services or advice, home-based business insurance can also provide specific coverage for professional liabilities. This can protect you from claims of negligence, errors, or omissions in your services.

Running a business from home has numerous advantages, but it’s important to recognize the unique risks involved. Home-based business insurance not only safeguards your business equipment and assets. It also provides liability protection for damages or injuries, as well as coverage for professional services. By securing the right insurance for your home-based business, you can focus on growing your business without worrying about potential risks and liabilities.

What Insurance Do I Need for My Home Business?

Different Types of Businesses Requiring Different Levels of Coverage

Home-based business insurance is essential for various types of businesses to protect their assets, liability, and income. The coverage levels needed can vary depending on the nature of the business activities. Let’s take a look at some examples:

Accountants and Tax Preparers

These professionals handle sensitive financial information. They may require professional liability insurance. This protects against errors or omissions that could lead to financial loss for their clients. They may also need coverage for business property and business interruption.

Web Design Firms

As providers of online services, web design firms should consider liability coverage for potential copyright infringement or breach of contract claims. They may also need coverage for their equipment and business interruption in case of website downtime.


With expensive camera equipment and exposure to public events, photographers should consider liability coverage for any bodily injury or property damage claims. They may also need coverage for their equipment and business interruption in case of loss or damage to their gear.

Online Goods Sales

E-commerce businesses selling products online may need liability coverage for claims related to product defects or injuries caused by their products. They should also consider coverage for their inventory, equipment, and business interruption.

Caterers and Food Sales

Businesses involved in food preparation and sales should prioritize liability coverage to protect against potential foodborne illness or allergic reactions. They may also need coverage for business property and equipment, as well as business interruption in case of unforeseen events affecting their operations.

Understanding the specific risks associated with each type of business is crucial for determining the coverage levels needed. By considering these factors, business owners can ensure they have the right home-based business insurance to protect their assets and financial well-being.

Limitations on the Amounts Covered for Business Activities or Equipment

In a typical homeowners policy, there are limitations on the amounts covered for business activities or equipment. This is because homeowners insurance policies are primarily designed to protect personal property and not necessarily business-related assets.

Coverage for business activities or equipment in a homeowners policy is generally limited to a certain percentage of the total policy limit. This means that if the policy provides coverage for personal property up to $100,000, the coverage for business equipment may be restricted to only 10% (or $10,000) of that amount. Additionally, there may be exclusions or restrictions for certain types of business property, such as high-value machinery or specialized equipment.

Given these limitations, it is crucial for home-based business owners to assess their unique needs and determine if additional coverage options are necessary. This can be achieved by adding specific endorsements or riders to the homeowners policy, which can increase the coverage amounts for business activities or equipment. Endorsements can vary depending on the type of business but may include options for higher coverage limits, coverage for business interruption, or coverage for liability arising from business operations.

To ensure comprehensive protection for their home business, it is advisable for business owners to consult with insurance companies or agents who specialize in business insurance. These experts can provide guidance on the most suitable endorsements or additional coverage options to adequately safeguard the business assets and mitigate potential risks.

Additional Coverage Options for Home-Based Businesses

When it comes to protecting your home-based business, your homeowners insurance policy may not provide sufficient coverage for your unique needs. That’s where additional coverage options for home-based businesses come in. Depending on the nature of your business, there are specialized coverage options that you may want to consider.

One important additional coverage option for home-based businesses is commercial umbrella insurance. This type of insurance provides extra liability protection beyond the limits of your general liability policy. It can help cover the costs associated with large lawsuits or claims that exceed the limits of your primary liability policies.

Another essential coverage option is cyber liability insurance. In today’s digital age, businesses face numerous cyber risks, such as data breaches and cyberattacks. Cyber liability insurance can help cover the costs of managing a data breach, including notifying affected individuals, providing credit monitoring services, and repairing systems.

Employment practices liability insurance (EPLI) is also worth considering for home-based businesses with employees. This coverage protects against claims of wrongful termination, discrimination, harassment, or other employment-related issues.

To simplify coverage and save on costs, many home-based businesses opt for a business owners policy (BOP). This type of policy bundles together several different coverages.

  • General liability insurance
  • Commercial property insurance
  • Business interruption insurance

This comprehensive coverage can protect your business from property damage, liability claims, and loss of income due to covered events.

Remember, every home-based business is different, so it’s important to assess your specific needs and work with insurance companies to customize your coverage to suit your business type and operations. By doing so, you can ensure that your home-based business is adequately protected.

How to Get Started with Getting Insured For Your Home-Based Business

If you run a home-based business, it’s essential to protect yourself and your assets by obtaining the right insurance coverage. While your homeowners insurance policy may provide some coverage for your business activities, it’s important to understand that it has limitations. To ensure adequate protection, you need insurance policies specifically tailored to the unique needs of your home-based business.

Getting started with obtaining insurance for your home-based business involves a few key steps. First, assess the nature of your business and determine the type of insurance coverage you need. This may include liability coverage, property damage, business equipment coverage, and more.

Next, research insurance companies that offer coverage for home-based businesses. Look for those that have experience working with entrepreneurs like yourself and offer customizable business policies.

Once you’ve identified potential insurance providers, reach out to get quotes and compare coverage options. Be sure to discuss your business activities and requirements in detail to ensure you have the appropriate coverage in place.

Remember, a typical homeowners insurance policy may not offer sufficient protection for your business, so it’s crucial to obtain additional coverage designed for business purposes. By taking the time to explore your options and find the right insurance policies, you can safeguard your home-based business from potential risks and protect your assets.

Watley Insurance Group Can Cover Your Business

As an independent insurance agency based in Shreveport, Watley Insurance Group understands the unique needs of home-based businesses and the types of coverages that fit best. We offer comprehensive coverage that can help protect your business and give you peace of mind.

Our policies include liability coverage, which can safeguard your business against any legal claims that may arise, such as personal injury or property damage. We also offer coverage for business equipment and business properties, ensuring that your valuable assets are protected.

At Watley Insurance Group, we work with a wide range of insurance companies to tailor a business policy that suits your specific needs. Whether you run a small online business or have clients visiting your home, we can provide the right coverage for your business activities.

In addition to typical homeowners insurance policy, we offer additional coverage options. This includes business income insurance. This protects you in case you experience a loss of income due to a covered event. Think of culprits like fire or theft. We also offer business interruption coverage, which can help reimburse you for lost income and ongoing expenses during a disruption to your business operations.

Don’t leave your home-based business at risk.

Trust Watley Insurance Group to provide the right coverage for your business. We do this so you can focus on what matters most – running and growing your business. Contact us today to learn more about our home-based business insurance options and how we can help safeguard your livelihood.

Our independent insurance agents proudly serve the Ark-La-Tex and look forward to helping you!

Wayne F. Watley, Jr.

Agency Principal, proud husband & father, and jazz enthusiast.