Insure Your Home-Based Business

Many business owners who operate out of their homes believe the homeowner's policy covers the company's insurance. However, most homeowner's policies cover only $2,500 worth of business equipment on the property and offer no business-related liability protection. If you own a home-based business, you may be subject to special insurance needs.

home-based business owners need property insurance to cover business equipment and inventory from fire, theft and other losses. Equally important is general liability insurance, which protects your company if a customer or supplier is injured in your home.

Choices for obtaining coverage include endorsements to a homeowner's policy, an in-home business policy or a business owner's policy.

Purchasing an endorsement to your homeowner's policy is the easiest and least expensive option for insuring your home-based business. The endorsement broadens your existing property coverage to include some limited coverage for business assets. This option may be sufficient for business owners with limited equipment, no inventory and slow customer traffic.

Business owners requiring coverage beyond a homeowner's policy endorsement should consider in-home business policy. This type of insurance fills the gap between the policy endorsement and the more extensive and expensive business owner's policy.