I run a home-based business: What kind of insurance do I need? 

The days of needing a brick-and-mortar location to run a business are over. Thanks to the internet and the newfound respect for remote work, people everywhere are opening up businesses in their homes, saving the expense of office space while still pursuing their entrepreneurial dreams. But is homeowners insurance enough? If you’re running a business from your home, it might not be. It all depends on your type of home-based business and the costs and risks involved. 

What type of business you have makes a lot of difference 

Buying insurance of any type is all about balancing risk. The more risk you take on with your business, the more likely you are to need insurance to protect yourself. For example: 

• If clients come to your home to do business, that increases the risk that someone could be injured on your property 

• If your home-based business is food related, you’ll need to be protected in case someone claims that your product made them sick

• If you offer advice to people, such as a lawyer or financial advisor, your advice could negatively affect someone and lead to a lawsuit

• If your business involves nothing more than a laptop, with no inventory or expensive equipment, and carries little risk, and you may be able to get by with the coverage on your homeowners policy.

Assess your risk to determine if you need business insurance

If you meet any of the criteria below, you should consider protecting yourself with business insurance: 

• Clients come to your home to conduct business 

• You are involved in the sale or production of food, beauty products, nutrition products, essential oils, or exercise consulting or equipment 

• You give clients advice that, if incorrect, could damage their health, finances or reputation 

• Your business involves keeping expensive inventory or equipment in your home

• Your business is inherently risky, like booking skydiving trips or running a construction contracting business where someone – either a client or employee – has a high likelihood of being hurt 

Most home-based businesses will need some type of insurance 

Nearly every type of business, whether home-based or in an office, carries a certain amount of risk. To protect yourself, you’ll need to purchase one or more types of business insurance. Here are some types of insurance you may need for your home-based business: 

Commercial property insurance – Commercial property insurance will cover the buildings and equipment you depend on to run your business. 

Business liability insurance – Business liability insurance protects you from bodily injury claims, property damage, and claims that your product caused injury to a customer. 

Errors and omissions insurance – This type of business liability insurance covers the cost of claims that your product or service inadvertently caused damages to a client. It also covers attorney fees, court costs and out-of-court settlements. 

Business owners policy – A business owners policy protects you from product-related claims, bodily injury claims, the loss of business equipment, and loss of income if your business is forced to close due to a covered event. 

Need help insuring your home-based business? 

Call the insurance experts at Edwards Insurance Agency in Taylors, SC today. We’ve helped thousands of entrepreneurs all over South Carolina and the southeast protect their businesses, and we’d be happy to help you, too.