Today, the mode of running businesses has changed. Instead of the brick-and-mortar office setting, many businesses are operating from home. Whether it’s with a view of making cost savings or flexibility, home-based businesses are here to stay. But with home-based business ventures, there is confusion when it comes to insurance. Does home insurance protect your business? Do you need commercial insurance? If you are a home-based entrepreneur wondering the kind of insurance you need, stick on as Karla Salmon Insurance of Oviedo, FL, clears the air.

Does home insurance cover my home-based business?

Home insurance is designed to protect your home and other assets from damage or loss from perils like theft, fire, hurricanes, and many more. Although your home insurance has personal belongings coverage, this may cover your home-based assets for a limited amount.

Furthermore, while your home insurance may have liability coverage, this won’t cover any liabilities related to your business operations. For instance, if a supplier falls and breaks their leg when making a delivery to your home-based business, home insurance won’t cover the medical expenses. So what’s next?

Commercial insurance for home-based businesses

Given the shortcomings of home insurance for your home-based business, home-based entrepreneurs need to consider commercial insurance for broad coverage. Here are commercial insurance options you should consider for your home-based business.

Business liability coverage: Covers you against advertising injury, property damage, and bodily injury sustained to others. If third parties visit your business, you must consider this coverage.
Commercial property insurance: Do you have significant assets for your business? If the value of your assets is above, let say, $2,500, you must purchase commercial property insurance to protect your assets.
Professional liability: If you offer consultancy services, like accounting or legal, this coverage protects you against missed deadlines and alleged negligence.
Cyber liability insurance: If your business has any online presence, this coverage protects you against malicious online activities.