How to Insure a Home-Based Business


From forgoing the morning commute, to being closer to your family, there are many reasons why you may choose to open a home-based business. But you might be surprised to discover what aspects of your home office are not covered under your existing home insurance policy. Make sure your home business is fully covered, including expensive assets, under an insurance policy. It starts with understanding how it all works.

Here are some quick tips on how to insure a home-based business:

  1. 1. Determine where your home business fits

    Defined as any type of activity performed for economic gain, business is a broad subject emerging in many ways, shapes and forms. But, whether you are performing freelance work on your home computer or creating trade goods out of your garage, knowing exactly where your home business falls on the spectrum is an important first step before considering business insurance options.

  2. 2. Make your home office a safe workplace

    Whether you build wooden benches out of your garage or trade stocks from a converted attic space, always ensure your home office is brought up to appropriate safety standards before seeking insurance. If you’re renovating an unused space in your home for your office, consider these tips.

  3. 3. Define your home business insurance needs

    To get the right insurance coverage for your home business, make a list of everything which needs to be covered. Although physical items, such as a computer or printer, are obvious, consider more abstract valuables, like data or business interruptions. While an existing home insurance policy may be enough to cover you, if your operation is more substantial or if you have employees, a more standard business insurance policy might be more appropriate.

  4. 4. Consult your existing home insurance policy

    Before looking into supplementary coverage for your home business, be sure to check your existing home insurance policy. Look to see what aspects of your business are already covered and whether gaps exist. If your business is small enough, aspects of it might be coverable under or appended to your existing policy through an endorsement. Speak with a PC® insurance broker to explore home insurance solutions available for your situation.

  5. 5. Consider personal liability

    If you plan to have employees or clients visiting or working at your home office, the need for appropriate insurance coverage intensifies. From personal injuries to property damage, operating a business out of your home opens you up to more risk. And personal liability does not stop at the door to your home office. Whether you accidentally break something valuable at a client’s office or one of your employees is injured out on a delivery, without proper coverage, you remain personally liable for company-related mishaps regardless of where they occur.

  6. 6. Look into additional coverage

    If you offer a refined professional product, professional service or high-level contract work, from writing freelance to offering financial advice, you may consider additional supplementary coverage called ‘errors and omissions insurance.’ This ensures that, if there is a dispute with your work or if a client is unsatisfied, you can be financially covered.


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