Is My Home Business Covered Under My Home Insurance Policy?

Is My Home Business Covered Under My Home Insurance Policy?

Is My Home Business Covered Under My Home Insurance Policy?

Here’s a brief overview:

  • Home insurance can cover some types of home-based businesses.
  • You can add coverage for business inventory and equipment to your home policy.
  • You might need a separate business policy if you have visitors or industrial equipment on site.
  • Telecommuting doesn’t usually require extra coverage, but there are exceptions.

Question I’m a marketing consultant and have been working out of my home for years. I have insurance on my home, but I’m not sure whether that covers my business. Should I have a business policy as well?

Farmers Insurance® agent Sandy Widmer of Casper, Wyoming, discusses your options for insuring a home business.

Answer For many customers with a home-based business, their regular home policy can provide the coverage they want. Farmers®®, for example, offers an optional endorsement that covers business-related content like inventory, equipment and supplies. It’s an affordable way to get coverage for many types of home businesses, like direct selling, consulting and creating web content.

That said, there are situations where you might want a separate business policy. Perhaps you use special equipment or tools that would be costly to replace. Maybe there are times when customers visit your home in person. Whatever the case, it’s worth a conversation with your agent to see whether a business policy in addition to your home insurance might be something you’d want.

I’m often asked whether telecommuting — working for your employer from home — requires any additional coverage. In the typical scenario where you work at a desk with your phone and computer, the answer is usually no. But there may be gaps in coverage if others visit your home for work purposes, or you have company equipment in your home. To be safe, find out what your employer’s insurance covers, and then check check with your agent to see what other coverages are available to you.

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