Home-Based Business? Your Homeowners Policy May Not Cover You

You finally did it.

You started the bakery, launched your online boutique, opened your photography business, or turned your spare bedroom into a home office. You’re building something you’re proud of.

But here’s a question many new business owners never think to ask: Does your homeowners insurance cover your business?

The answer might surprise you.

Your Home Is Covered. Your Business Might Not Be.

A standard homeowners insurance policy is designed to protect your home and your personal belongings. Once business property, equipment, inventory, or clients become part of the picture, coverage can become very limited or disappear altogether.

Depending on your policy, you may only have a small amount of coverage for business property, and many business-related claims may be excluded entirely.

Here Are a Few Examples

Imagine one of these situations:

• A fire damages your office equipment, inventory, and business records.

• A client slips and falls while visiting your home office.

• Someone steals thousands of dollars’ worth of products you keep in your garage.

• Your business laptop is damaged, and you lose important customer information.

Many homeowners are shocked to learn their standard homeowners policy may not fully cover these losses.

Businesses That Often Need Additional Coverage

You don’t have to own a storefront to need business insurance.

• Sell products online

• Bake or cater from home

• Offer consulting or bookkeeping services

• Operate a daycare

• Run a salon or barber business from home

• Create crafts or custom products

• Teach music or tutoring lessons

• Work remotely with expensive business equipment

Even a side hustle can create insurance exposures.

What Are Your Options?

Depending on your business, there are several ways to help protect yourself:

• A home-based business endorsement

• An in-home business policy

• A Business Owner’s Policy (BOP)

• General liability insurance

• Professional liability coverage

• Commercial property insurance

The right solution depends on what you do, how much equipment you have, whether customers visit your home, and how much income your business generates.

Peace of Mind Is Good for Business

You’ve worked hard to build your business. The last thing you want is to discover after a loss that your insurance wasn’t built to protect it.

A quick coverage review today can help prevent an expensive surprise tomorrow.

If you’re running a business from home, I’d be happy to review your current coverage and help you understand your options. Even if you’re just getting started, it’s never too early to make sure your hard work is protected.

Insurance with Intent. Service with Soul.

Shamaya “Shay” Greene Independent Insurance Broker Serving clients across Texas