6 Basic Insurance for Your Home-Based Services


6 Basic Insurance for Your Home-Based Services

With millions of Americans out of work this year, it's no surprise that starting a home-based business is growing in popularity. According to a recent

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With millions of Americans out of work this year, it’s no surprise that starting a home-based business is growing in popularity. According to a recent online, nearly one in five homeowners reported starting their own business in the past six months. Starting a home-based business is an exciting venture, but young entrepreneurs aren’t always aware of the risks involved. An excellent home-based services insurance policy can protect your interests. 

Insurance policies for Home-Based Services 

Home insurance provides liability coverage for specific events that occur in your home, but it does not cover business activities related to your home. For example, if a customer comes to your home to pay for goods or services and is injured, your home insurance may not cover liability. Gaps in coverage can quickly be filled with commercial insurance. 

1. Commercial Insurance

You should consider commercial insurance, if.

  • the home-based services provide direct services to clients in your home, such as tax returns or hair salon services; you may need additional specific liability insurance. 
  • If you plan to keep $5,000 or more worth of business property in your home
  • You rely on the income from your business to support your family.

2. Property insurance for your business 

If you use equipment such as computers, fax machines, printers, and furniture in your home business, you’ll need business property insurance to cover loss or damage. This is because homeowners insurance does not usually cover damage caused by fire or flood. Instead, you should carry property damage insurance for your business.

3. Professional Liability (Behavioral Insurance) 

Like freelancers who work off-site, freelancers who work from home also need professional liability insurance. Professional liability insurance protects you from potential client (or patient) claims for negligence or malpractice if you work as a consultant or freelancer.

4. Product Liability Insurance 

If your business involves manufacturing or supplying products, you should discuss product liability Home-Based Services insurance with your insurer. This insurance can protect your business against property damage or bodily injury resulting from products you designed, manufactured or supplied.

5. Health Insurance

Also, don’t forget medical insurance, which covers medical expenses in the event of illness or injury, and disability insurance if you are unable to work due to illness or injury. If you have employees, consider small group insurance for your Home-Based Services. 

6. Umbrella Policies

Umbrella policies provide additional coverage for damages if the primary policy limits are exhausted. For example, if you suffer an injury requiring $150,000 in medical expenses and the primary policy’s liability limit is $100,000, the umbrella policy will pay an additional $50,000.

7. Final considerations

  • Today, many successful entrepreneurs and small business owners run their businesses from the comfort of their homes. However, just because you can run a business in flip-flops doesn’t mean it’s not a real business. Therefore, you need to ensure your Home-Based Services like any other business.
  • It is important to note that neither homeowners nor renters Home-Based Services cover home-based businesses for small business owners. Therefore, if you own a home-based business, working with an insurance professional who can provide you with more information on the different types of home-based business insurance available is advisable.

Author Bio

Lily Poole is a Property and Home Insurance officer by profession. She is pretty well experienced in the landlord insurance NYC and accounting field and has an impressive profile in the training and development industry.