Protect Your Business with Home-Based Business Insurance

If you are operating a business out of your home, it is important to make sure you are properly covered. Home-based business insurance can protect you and your business.
June 19, 2023 | Business

What is home-based business insurance?  

Home business insurance provides protection for you and your home business. The standard homeowners policy doesn’t cover liability for bodily injury or property damage arising out of the business pursuits of any insured. Coverage for personal property used for business purposes is also limited. Home-based business insurance helps fill those gaps and protects you, your lifestyle, your business, and your customers. 


Do I need home-based business insurance? 

Ask yourself these questions to determine if your home business requires extra protection. 

  • Do customers or clients visit your home? 

  • Accidents happen. If someone gets injured at your home, home business insurance will help pay their medical bills. If you’re sued for injury or damage to property, it will cover your legal expenses. You’ll also receive coverage for things like advertising injury and product liability.  

  • Would you lose income if damage to your home interrupted your business? 

  • Home-based business insurance will help keep your business running and ensure you continue to get paid if something unexpected, like a house fire, puts your business on hold. 

  • Do you keep inventory or supplies at your home? 

  • Personal property used in your home business, such as desks, computers, or merchandise samples, are covered whether items are in your home or somewhere else. You also receive protection for things like accounts receivable, valuable papers, and software. 


What types of business are eligible for home-based business insurance?  

Acuity's Home-Biz coverage is available for offices, retail, service operations, arts or crafts, and daycare services. Examples include: 

  • Child care services 

  • Financial planners 

  • Graphic designers 

  • Craft fair artists 

  • Farmers market vendors 


Home-based businesses meeting these qualifications are eligible: 

  1. Business is owned entirely by members of the household 

  1. Maximum of two full-time employees, including owners who are actively involved in the business 

  1. Annual sales of $250,000 or less 

  1. Your home is the only business location 

  1. Business occupies 500 square feet or less in your home 

  1. Day care services for no more than three children, other than household members 

  1. No used or secondhand merchandise is sold 

  1. Value of business property is $50,000 or less 


We would love to help you protect your home business. If you do not have insurance for your home-based business, contact your independent insurance agent today!