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All you need to know about home-based business insurance

Before getting an insurance for your home-based business, make sure you know what the coverage is about.



Many huge businesses today have started from home, either by having a single or few rooms with one or handful of workers.

Nevertheless, homeownership policies are not as explicit and efficient in insuring a home business, as it is done via private or commercial property insurance. On a rough estimate, nearly 60 percent of small or home businesses do not have adequate business insurance. It can become a trouble for the owner in case of any unfortunate events.

Often, this occurs due to the popular idea that one’s home insurance covers all the business activities, too, that are to be carried out in the future. This is a wrong concept.

If you are renting and are doing business out of your home, it must be noted that keeping the owner unaware of your business-related activities might affect the validation of the agreement between you and the owner of the unit. Hence the need to have a fully focused home business-based insurance.

Liability insurance

For instance, any injury to a person in a home gains him/her compensation through home insurance for medical treatment. Similarly, if one runs a home business, the clients or workers might meet the same unfortunate circumstances; here the home insurance is silent, so the need of insurance particular to the type of business is necessary to make up for the damage.

Product insurance

Moreover, just like a commercial business, a home-based business also requires a product insurance which deals with any kind of loss or delay in production.

A home-based business insurance protects your livelihood from unexpected events. (Source)

Office insurance

In a commercial business, one even has office insurance too which caters to the office setup and its usual improvement. When you face any ups and downs, the office insurance balances out the losses. In a home-based business, if proper business insurance is not acquired, the home office is at the mercy of luck. In case of an accident, home insurance will not serve the purpose of goods present in office too.

Interruption insurance

Similarly, for any interruption or delay in business, there is a separate clause of business interruption insurance which must be opted by the home entrepreneur.

Vehicle insurance

One’s vehicle should also be applied for special insurance if it is being used for business purposes as well, in addition to general family use. It protects and compensates for the services the vehicle has to undergo since it does double the work as compared to the other vehicles.

Omission insurance

If the home business is related to therapy, counseling and professional advice-giving, one needs to have an errors and omissions insurance for the decisions and advice in certain circumstances, as they may not prove as fruitful as intended in the first place.


DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.


Naeem K. Manz is an experienced blogger, digital content & social marketer. Author of quality websites and contributor to search giants like Yahoo Finance, MSN. He is passionate on covering topics like business strategy, startups & entrepreneurship.