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Home Business Insurance
Coverage for your home-based small business
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Specialized insurance that meets the needs of home businesses
From Apple to Under Armour, many famous companies got their start as home-based businesses. Working from home, whether for a short time or long-term, has its advantages. But one challenge is making sure you have the right insurance. Renters and homeowners policies typically won't cover business liabilities. For that, you'll want home business insurance, which provides the protection you need so you can focus on growing your company.
What is home-based business insurance?
Customized business insurance for home-based companies can include a range of coverage types depending on factors like what you do. For example, you may need liability protection for accidents, property coverage for assets and equipment, and commercial auto for your vehicle.
Finding the right policy for your home business is easy with Progressive Commercial. Start a quote online or call us to connect with an agent who will help you get the personalized protection you need.
Why insurance for a home-based business is important
All businesses face risks, even if they operate out of a relatively controlled environment like a home. You might need home business insurance if you answer "yes" to any of the following:
- Do customers and clients visit your home?
- Do you store supplies, inventory, or products at your home?
- Would damage to your home interrupt your business?
- Does your business have employees?
Home-based businesses come in all shapes and sizes, which means cookie-cutter insurance policies might not meet your needs. Customized home business insurance gives you protection for your specific risks.
For example, if a client visits your home office and gets injured, liability insurance can pay for their medical bills. Even businesses that operate entirely online face risks. In those cases, cyber insurance can help cover the costs of cyber attacks and data breaches affecting customer information you store.
Do home-based businesses need insurance?
Yes, most home businesses should have insurance, but whether it's required depends on what you do. Even when it's optional, some clients might expect you to have certain types of coverage. In fact, many contracts ask for insurance before you can start working. Having the right policy can help protect your business and make it easier to get new jobs.
If you need proof of insurance to meet legal or contractual obligations, a certificate of insurance (COI) can help. This document, issued by your insurer, summarizes your policy and confirms you have coverage.
Who needs business insurance for a home-based business?
Home business insurance is a good fit for companies of all kinds. It's especially important if you meet clients at home, use expensive equipment, handle sensitive data, store inventory, and more. The following businesses are some examples of home-based operations that could benefit from coverage:
- Event planners
- Freelance creatives, like photographers
- Online teachers
- Online fitness instructors
- Consultants
- Dropship businesses
- eBay and other marketplace sales
- Virtual assistants
Home-based businesses can be organized in a variety of ways, but all of them benefit from having the right insurance. Whether you have an LLC, a sole proprietorship, or a startup, Progressive Commercial can tailor a policy to your specific needs.
Types of insurance for a home business
Home-based businesses can range from a one-person consulting company to a fully staffed event rental operation. Depending on what your business does, you might need any or all of the following home business insurance coverages.
General liability (GL)
Covers third-party injuries and property damage
General liability (GL)
Covers third-party injuries and property damage
General liability insurance is the most common coverage for home businesses. It helps pay for injuries or damage your business causes to others or their property. It also protects against claims of slander, libel, and copyright infringement. Learn more about the benefits of general liability and the cost of GL insurance.
Example: A freelance graphic designer has a home office visit from their client, who trips over a loose rug and breaks their arm. General liability can pay for their medical bills and any legal fees if they decide to sue.
Business owners policy (BOP)
Liability and property insurance in one flexible policy
Business owners policy (BOP)
Liability and property insurance in one flexible policy
A BOP combines liability coverage with commercial property insurance to protect business personal property like computers, furniture, and tools you need to work. You can add other BOP business coverages to build a single policy with the safeguards you need.
Example: A screen printer makes custom T-shirts and stores inventory in their basement. A water pipe bursts and ruins a customer's order. The commercial property part of their BOP can pay to replace the inventory.
Commercial auto
Coverage for your business vehicles
Commercial auto
Coverage for your business vehicles
If you use your car for work-related activities, a commercial auto insurance policy is essential. State auto insurance rules require minimum liability coverage, but you can get better protection for your vehicle with additional commercial auto coverages, like comprehensive and collision.
Example: A mobile dog groomer's van is vandalized in their driveway. Their commercial auto coverage can pay to repair broken glass and other damage.
Inland marine
Coverage for movable business property
Inland marine
Coverage for movable business property
If you keep business assets outside your home, whether in storage or at job sites, you should consider inland marine insurance, also called tools and equipment insurance. It protects your business's belongings while they're away from your home office.
Example: A landscaper sets appointments from their home but travels with tools and machinery to different job sites each day. Their landscaping equipment gets stolen while their truck is parked outside a client's house. Inland marine can pay to replace their tools.
Workers' compensation
Essential protection for employees
Workers' compensation
Essential protection for employees
Workers' comp insurance protects your employees from injuries or illnesses that can occur on the job. Even if you're a sole proprietor, this coverage can help you recoup lost income if you're ever injured at work. Learn more about the cost of workers' comp and your state's workers' comp regulations.
Example: A home-based carpenter subcontracting with a construction company takes on a new cabinetry project. In her garage studio, she gets injured by a jigsaw when cutting wood. Workers' comp would pay for medical bills and lost wages while she recovers.
Professional liability
Covers claims of negligence
Professional liability
Covers claims of negligence
Professional liability insurance, also called errors and omissions (E&O) insurance, protects your business against claims of negligence related to a service. This coverage is important for people who give advice, such as consultants, tax preparers, real estate agents, and even personal trainers.
Example: A financial planner advises a client, who makes a substantial investment and loses money. The client sues for negligence. Professional liability can pay for legal defense and any settlements, regardless of whether the claim is true.
Cyber
Protects against data breaches and cyber attacks
Cyber
Protects against data breaches and cyber attacks
Anyone who processes electronic payments or works with sensitive data like credit card info or financial documents should consider cyber insurance. It pays for things that help you recover from a breach, like data recovery or investigative services. Find out more about cyber coverages and what cyber insurance costs.
Example: A home-based e-commerce business stores customer credit card information in a database, which gets breached. Cyber insurance can pay to investigate what happened and the cost of notifying customers.
Does home-based business insurance cover work you perform elsewhere?
Yes, it does. Business insurance is customized to protect your company, whether you're at home or elsewhere.
A typical homeowners policy with added coverage can offer some business protection when you're at home. But work doesn't stop at your front door, and neither should your insurance. Off-site activities can involve different risks, like driving or visiting client locations. To stay protected, you'll need coverage built specifically or business activities.
Some home-based companies may even be required to have insurance. For example, sole proprietors who work as independent contractors or 1099 employees for other companies may need their own liability or workers' comp coverage.
Contact your home insurer about a home-based business
It's important to let your homeowners insurance company know if you run a business out of your home. If a work accident, like a customer injury, happens where you live, your insurer could deny the claim or even cancel your policy. Being clear about the risks you face will ensure you have the right protection for your family and your business.
How much does home business insurance cost?
Home-based business insurance costs depend on your work and job risks. For example, a home-based cottage food operation with employees will likely pay a different rate than an architect who works alone. Common factors that insurers consider when determining your premium include:
- Revenue
- Number of employees
- Location
- Type of work
- Claims history
- Special equipment
- Coverage selections
- Insurance limits
Business insurance and auto are separate policies, so be sure to include the cost of commercial auto when calculating your total payment. If you have a BOP or general liability policy, you may qualify for an insurance discount.
The easiest way to determine how much coverage costs is to get a home business insurance quote. You'll answer some questions and get personalized insurance information for the type of work you do.
Home business insurance through Progressive Commercial
Progressive Commercial has been helping small businesses like yours for over 50 years. Our licensed agents, exceptional support staff, and wide range of coverages deliver trusted protection and support. No matter what kind of home-based business you have, we're with you every step of the way.
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