HOME BUSINESS INSURANCE
Home business insurance for sole proprietors.
About 16 million Americans operate businesses from home. A standard homeowners policy excludes business property above a low threshold and provides no business liability coverage at all. If you run any commercial activity from your home you need a separate business policy or endorsement.
What it covers
What home business insurance covers
What it covers
Business Personal Property
Covers business equipment, inventory, and supplies against theft, fire, and certain other perils. Standard homeowners policies cap business property coverage at $2,500.
What it covers
General Liability
Pays if a client, vendor, or delivery person is injured at your home office or if you damage a client's property. This is the general liability protection a homeowners policy does not provide.
What it covers
Professional Liability (errors and omissions)
Covers you if a client claims your work caused them financial harm. This professional liability protection is critical for consultants, designers, and service providers.
What it covers
Business Interruption
Reimburses lost net income and fixed expenses if a covered event forces a temporary shutdown of your home-based operation. It is usually added by endorsement or built into a business owners policy.
Where policies have edges
What a home business policy does not cover
Not covered
Employee injuries
Workers comp is required once a home business reaches a certain employee count -- the threshold varies by state. Your homeowners policy provides zero coverage for employee injuries.
Not covered
Professional errors and advice
Professional advice, errors, and omissions are excluded from general liability. A separate errors and omissions policy is required.
Not covered
Commercial auto use
Business vehicles used primarily for business purposes require a commercial auto policy.
Not covered
Product Liability
If you manufacture or sell physical products, separate product liability coverage is required. General liability alone does not cover product defect claims.
Who needs this
Who needs Home Business Insurance?
Home-based freelancers, consultants, graphic designers, photographers, tutors, and therapists who see clients at home or store professional equipment there. E-commerce sellers who keep inventory, ship products, or run fulfillment from a residential address. In-home daycare operators, personal trainers, cosmetologists, and licensed trades who serve customers on site. Virtual assistants and accountants whose errors-and-omissions exposure is not covered under a standard homeowners liability section. Any home-based operator approaching the employee count where workers' compensation becomes required, a threshold that varies by state. Short-term rental hosts who also run a secondary service business from the same property.
What it costs
What can you expect to pay?
$400 to $1,500 per year
Requirements by state
How does this work in your state?
Home Business Insurance rules, regulatory requirements, and available coverage vary by state. Send us your state and details through a free coverage review and we will confirm what applies to you.
If You Need to File a Claim
Claims tips
First Steps
Report the loss to your carrier immediately. Home business claims can cross between your home business policy and your homeowners policy depending on what was damaged or who was injured. A client injured on your property while meeting with you for business purposes is typically a business liability claim, not a homeowners claim. Clarify which policy applies before assuming.
What to Document
Photograph any property damage. For equipment losses, gather purchase receipts and serial numbers. For a client injury, collect the injured party's contact information and any witness information. Do not make any statements admitting liability. If business inventory or equipment was damaged in a home event like a fire or water loss, document the business property separately from personal property.
Common Mistakes
Assuming a homeowners policy covers business equipment or client injuries at the home. Standard homeowners policies typically exclude business activities and cap business property coverage at very low sublimits, often $2,500 or less. Not reporting a client injury because it seemed minor. Minor injuries can become significant claims weeks later.
When to Call Us
Any time a client, vendor, or visitor is injured at your home office, any time business equipment or inventory is damaged, or any time you are unsure whether a home-based loss is covered under your home policy or your business policy.
OUR CARRIER PANEL
Carriers We Work With
The carriers we compare are licensed and regulated in your state. We shop these markets and present the options that match your situation; a licensed advisor reviews the fit with you in a free coverage review.
Common Questions
Home Business Insurance: frequently asked questions
Does my homeowners policy cover my home business?
Generally no, not for a meaningful home business. A standard homeowners policy limits business property to $2,500 and excludes business liability.
What is the difference between home business insurance and a business owners policy?
Home business insurance is for sole proprietors and owner-only operations; it runs $250-800/yr.
Why doesn't my Georgia homeowners policy cover my home office equipment?
Standard Georgia homeowners policies cap business property at $2,500.
Why does my Georgia homeowners policy not cover my home business?
Your standard homeowners policy excludes business activities.
Does my Georgia homeowners policy cover business liability?
Business liability is excluded from standard homeowners policies.