Figuring Out if Your Home Business is Covered
Posted by Mike F. on June 1, 2016 in Home Focus

There are many different types of home businesses. You might babysit a group of kids or do some graphic design work from a home office, or maybe you cut hair or arrange flowers. With all these home businesses, a simple question that often comes up is whether you are properly covered by your homeowners policy. Standard homeowners policies exclude liability for bodily injury or property damage arising out of the business pursuits of any insured and personal property used for business purposes is limited to $2,500 on the premises. However, most companies offer a home business endorsement you can add to your homeowners policy to ensure you are properly covered.


The following coverages are often provided in a standard home business endorsement:

  • Personal property used in the home business.
  • Business income and extra expense.
  • Products and completed operations.
  • Damage to property of others.
  • Personal and advertising injury.


There are some guidelines that will help determine if your business is eligible. For instance:

  • The business must be owned entirely by the named insured, spouse, and/or members of the household.
  • A limited number of employees, including the owners actively involved in the business, are allowed.
  • Gross annual receipts cannot exceed $250,000.
  • Business contents limit cannot exceed $50,000.
  • The dwelling must have been built as a one- or two-family dwelling or be used principally for residential purposes.


As you think about whether you need additional insurance for your home business, you may want to consider talking to your independent insurance agent about Acuity Insurance. Our premiums are generally very affordable and we work to ensure you have the proper coverage for your home business. Don’t be caught off guard when it is too late. Talk to your insurance agent today.

Mike F.
Mike F. knows ACUITY and insurance inside and out. He has more than 36 years of insurance industry experience, including 29 years at ACUITY. His expansive knowledge of home insurance makes him a valuable resource. One of his favorite things about the insurance industry is helping people recover from low points in their lives and getting them back on their feet. If he is going on a trip, you’ll likely find him somewhere warm and sandy

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