Insurance Coverage For Home-Based Businesses
Insurance coverage for home-based businesses is a type of insurance that protects business owners from various risks and liabilities associated with running a business from home. Home-based business insurance typically covers business equipment, liability, business interruption, and professional liability ¹ ² ³.
Home-based business owners need insurance coverage because their homeowners or renters insurance policies do not cover business-related risks. For example, if a client visits your home office and gets injured, you could be held liable for their medical expenses. Home-based business insurance would cover these expenses ¹ ² ³.
There are various types of insurance coverage for home-based businesses, including general liability insurance, professional liability insurance, business personal property insurance, business interruption insurance, and cyber insurance. General liability insurance covers legal fees and damages if your business is sued for damaging a customer’s property or causing physical injury. Professional liability insurance, on the other hand, covers legal defense and damages for lawsuits arising from claims of negligence, inaccurate advice, and misrepresentation ¹ ³.
Business personal property insurance pays for damages or replacement of business property, such as equipment and furniture, after a covered peril like a fire or theft. Business interruption insurance replaces lost income if your business is unable to operate after a covered peril. Cyber insurance covers lost or corrupted data, liabilities, identity theft, cyber extortion, and reputation recovery ¹ ³.
The cost of home-based business insurance varies based on the risks associated with running your business and the types of coverage you purchase. General liability insurance can cost as little as $11 per month, while professional liability insurance starts at around $19 per month. However, businesses that need more coverage could pay hundreds of dollars per month for insurance ¹ ³.
Some of the top home business insurance providers include Next Insurance, Hiscox, The Hartford, American Family, and Thimble. Next Insurance is the best overall provider for home-based business insurance, while Hiscox is the best for businesses working at client locations. The Hartford is the best for consultants, accountants, and architects, American Family is the best for micro home-based businesses, and Thimble is the best for event planners or vendors ³.
In conclusion, insurance coverage for home-based businesses is essential for protecting business owners from various risks and liabilities associated with running a business from home. Home-based business owners should consider purchasing insurance coverage to ensure their businesses are protected from legal fees, damages, and other business-related risks.