Business Owners Policy FAQs

Does my homeowners policy cover my home business?

All FAQs

Quick answer: Generally no, not for a meaningful home business. A standard homeowners policy limits business property to $2,500 and excludes business liability.

Only a little, and usually not enough. A standard homeowners policy provides very limited coverage for a home business, and most home-based businesses need additional protection. Your homeowners policy is built to protect your home and personal belongings, not your business operations.

Most homeowners policies cap coverage for business property in the home at a small amount, often around $2,500, and even less for business property taken off the premises. Just as important, they typically exclude business liability entirely. If a client is injured at your home office or your product causes harm, your homeowners policy will likely not respond.

Common gaps for a home business include:

  • Business equipment and inventory beyond the small homeowners cap.
  • Liability for clients or customers who visit your home.
  • Professional mistakes and lost business income.

For example, suppose you run a photography business from your home in Roswell and a client trips on your steps during a session, leading to a $30,000 injury claim. Your homeowners policy would likely deny it because it arose from your business. A business owners policy or a general liability policy would be designed to cover that exact situation.

Depending on the size of the business, the gap is filled by a simple endorsement on the homeowners policy or a separate business policy. To match coverage to how your home business actually operates, start a free coverage review at /coverage-review/.