Insuring a home-based business

7 things to consider

1. Business equipment, inventory and supplies

If you keep these at home but haven’t itemized them in your home policy, most policies will limit how much you can claim. If you travel with a laptop or other business equipment, you may need extra insurance.

2. Employees or clients coming to your home

Your home policy won’t cover you if employees or clients get hurt while in your home.

3. Providing services at a client’s site

You may need insurance to protect yourself from any claims that a client might make after you complete your work and leave. Examples: personal trainers, housekeepers.

4. Using your car for business purposes

You’ll need special car insurance.

5. Claims against products you sell

You may need insurance to protect your business against any claims that your product does not work well.

6. Claims against services or professional advice

You may need to protect yourself and your clients. For example, malpractice insurance protects you from claims if a treatment goes wrong. Or you may need insurance to protect yourself if a client sues you because your advice was poor, incomplete or just plain wrong.

7. Lost income

You may need disability insurance in case you’re hurt or unable to work. Also consider insurance to cover your lost revenue if a disaster like a fire or flood hits your business.

Take action

Talk to an insurance expert about what coverage you need. Make sure you understand what is and isn’t covered in your home insurance policyInsurance policy A written contract for insurance. It describes how long you are covered, what you are covered for, any part that you have to pay (the deductible) and what you will pay for the insurance (your premium).+ read full definition.

Caution

Your home insuranceHome insurance Insurance that covers your home and its contents against losses. Also covers you for accidents that may happen at your home.+ read full definition policy may not cover all types of damage. Read this brochure to learn what may be excluded from your coverage.