Insurance for In-Home Businesses

In-home businesses, whether they involve freelance writing, consulting, crafting or any other endeavor, are not immune to unforeseen events that can disrupt operations and jeopardize financial stability. From property damage to liability claims, the risks faced by in-home businesses are diverse and potentially devastating. Therefore, having adequate insurance coverage is not just a prudent choice but a necessity for safeguarding your success.

What Insurance Does My Home-based Business Need?

It’s important to note that your homeowners insurance may not be suitable to cover all your home business risks. Home insurance might offer some financial protection for very small businesses, but its limits and capabilities generally fall short of what many entrepreneurs require.

Home-based businesses should consider the following coverage, which may be available to be added onto homeowners insurance or available within a standalone business policy:

• Property protection—Your home is not just your living space; it’s also your place of business. In the event of a fire, theft or natural disaster, your home office equipment, inventory and other assets could be damaged or destroyed. Business property insurance may assist in covering the expenses associated with repairing or replacing damaged items, facilitating a prompt resumption of operations without imposing a substantial financial strain.
• Liability coverage—Even within the confines of your home, accidents can happen. Whether it’s a client slipping on your doorstep or a delivery person getting injured on your property, you could be held liable for any resulting injuries or property damage. Liability insurance may offer financial security by covering legal claims and medical costs, safeguarding both personal and business assets from the risk of lawsuits.
• Professional liability insurance—As a service-based business owner, you provide expertise and advice to your clients. However, if a client alleges that your services caused them financial loss or harm, they may take legal action against you. Professional liability insurance may cover claims from professional negligence, mistakes or omissions in your work.
• Business interruption coverage—Business interruption insurance can help replace lost income and cover ongoing expenses, such as rent and utilities, while your business is temporarily unable to operate from your home.
• Cyber liability insurance—In today’s digital age, cyber threats pose a significant risk to businesses of all sizes, including home-based enterprises. Cyber liability insurance can cover losses from data breaches, cyberattacks and other digital threats, helping you recover from the financial and reputational damage associated with such incidents.
• Workers’ compensation insurance—If you have employees working in your home-based business, you may need workers’ compensation insurance to cover medical expenses and lost wages in the event of work-related injuries or illnesses.

Business Insurance in La Habra, CA

Before selecting insurance coverage for your home-based business, it’s essential to assess your specific risks. Contact DRD Insurance Agency today to find a policy tailored to meet your needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.