Do I Need Insurance for a Home-Based Business? 

Home business insurance is a type of coverage that is designed to protect home businesses and those that own those businesses. If you are a homeowner, your homeowner’s insurance will not usually cover any type of business liabilities. The same holds true if you are a tenant; that is, renter’s insurance will not cover business liabilities.

In this guide, you will learn whether or not you need home-based business insurance and will be provided with a brief synopsis of the coverage types that are available. 


When deciding if you need insurance for your home-based business, ask yourself the following questions:

  1. Do customers or the clients of your business visit your home?
  2. Do you use your home as a place to store inventory, products, and/or supplies?
  3. If your home experienced damage, would it interrupt your business? 
  4. Do you have employees working for you?

If you answered “yes” to any or all of the above questions, then yes, you do need home business insurance. 

What Coverages Are Available? 

If you have found that you need home business insurance, it is now time to determine what types of coverages that you need for that insurance. The following outlines the most common among customers:

  • General Liability – This is considered to be the most common of all coverages for individuals that have a home business. It aids in covering third-party injuries and other types of similar damages in which you are directly responsible. 
  • Workers’ Compensation – If you have employees working for you, you will need to carry this coverage. If an employee experiences an illness or an injury at work, this will protect them. 
  • Commercial Auto – If you use a vehicle for your business, you need commercial automobile coverage. This will protect the vehicle, you, and anything you carry in it should an issue occur. 
  • Professional Liability – This type of insurance coverage protects your home business should you have a claim put against you that is related to the professional services that you engage in. In many instances, this type of coverage is known as “errors and omissions insurance” or simply, “E&O”.

How Much Does It Cost? 

If you need insurance for your home business, many factors will play a role in how much it will cost you. These include your location, the overall size of your business, and the type of work that you perform.

If you specialize in retail and work alone, it will be much cheaper than if you specialize in selling food products and have employees. 

Contact Us Today 

If you are in need of insurance for your business, we here at Modica Associates encourage you to contact us today. We will work closely with you to determine the coverage types that you are in need of and to get you the absolute best prices.

In addition to home business insurance, we specialize in commercial auto insurance, homeowner’s insurance, renter’s insurance, property insurance, and more! To learn more or to get a quote, contact us now by calling: 718-855-1836

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