Protecting Your Home-Based Business
by Mike Compton
Running a business from home is more common than ever. Whether you’re an online retailer, freelance designer, bookkeeper, or craft maker, building your business from the comfort of your home offers flexibility and freedom. But with that freedom comes responsibility—especially when it comes to protecting what you’ve built.
At Shafer Insurance Agency, we often see home-based business owners assume their homeowners policy will cover everything. Unfortunately, that’s rarely the case.
Why Your Homeowners Policy Isn’t Enough
Most standard homeowners insurance policies offer little to no coverage for business-related risks. For example:
- Business property, like computers, printers, or inventory, may only be covered up to a very small limit.
- Liability coverage typically doesn’t extend to clients visiting your home or services/products you provide.
- If your business causes damage to your home or someone gets hurt on your property due to your business operations, you could be on the hook without the right coverage.
Insurance Options For Home-Based Businesses
Here are some common ways we help home-based business owners protect their work:
- Home-Based Business Endorsement – This can be added to your homeowners policy and typically offers limited coverage for business property and liability. It’s a great option for low-risk businesses.
- Business Owners Policy (BOP) – A BOP combines general liability and business property insurance into one package. It’s ideal for those with more equipment, clients coming to their home, or those shipping goods.
- Professional Liability Insurance – If you offer services or advice—such as bookkeeping, consulting, or graphic design—this coverage protects you against claims of negligence or professional mistakes.
- Cyber Liability Insurance – If you handle customer data, process payments, or rely on technology, cyber insurance can help protect you in case of data breaches or cyberattacks.
- Commercial Auto Insurance – If you use your car for business—making deliveries, meeting clients, or hauling supplies—you may need a commercial auto policy.
You’ve worked hard to build your business. Don’t leave it exposed to risks that could undo all your progress. An affordable policy tailored to your business needs can offer peace of mind—and allow you to focus on growth. Shafer Insurance Agency is here to help you find the right coverage for your situation. Contact us today to review your policy and explore your options.