Do I Need Insurance For My Business At Home?

  • John A. Osborne
  • Apr 18, 2023
Small Business Insurance Vermont

Starting a business at home is a great way to make money and be your own boss. However, it also comes with its own set of risks and responsibilities. One of the most important things to consider when starting a home-based business is whether or not you need insurance. This article will explore the different types of insurance you may need and why it is important to protect your business.

Before we dive into the details of insurance, let’s take a moment to consider the benefits of running a business from home. Working from home can save you money on rent, transportation, and other expenses associated with running a business. It also allows you to have a flexible schedule and work-life balance. However, there are also drawbacks, such as the potential for distractions, isolation, and the lack of a professional image.

Types of Insurance for Home-Based Businesses

There are several types of insurance that you may need when running a business from home. The specific types of insurance you need will depend on your industry, the size of your business, and other factors. Here are some of the most common types of insurance for home-based businesses:

  1. General Liability Insurance: This type of insurance protects your business from lawsuits and other claims related to property damage, bodily injury, and personal injury. It is important to have this coverage even if you do not have clients or customers coming to your home because accidents can happen.
  2. Product Liability Insurance: If you sell products, you will need product liability insurance to protect you from claims related to injuries or damages caused by your products.
  3. Professional Liability Insurance: Also known as errors and omissions insurance, this coverage protects you from claims related to negligence, errors, or omissions in your professional services.
  4. Homeowners Insurance: Your homeowners insurance may not provide coverage for your business, so it is important to talk to your insurance agent about adding a rider or separate policy to cover your business equipment and liability.
  5. Business Interruption Insurance: This type of insurance provides coverage for lost income and expenses if your business is interrupted due to a covered event, such as a natural disaster or fire.

Why You Need Insurance for Your Home-Based Business

Now that we have discussed the types of insurance you may need, let’s talk about why it is important to have insurance for your home-based business. Here are some reasons:

  • Protection from Liability: If someone is injured on your property or as a result of your products or services, you could be held liable. Insurance can protect you from the financial burden of legal fees, settlements, and judgments.
  • Protection of Assets: Your business equipment and inventory are valuable assets that should be protected in case of theft, damage, or loss due to a covered event.
  • Compliance with Regulations: Depending on your industry and location, you may be required by law to have certain types of insurance, such as workers’ compensation or professional liability insurance.
  • Peace of Mind: Knowing that you are protected from unexpected events can give you peace of mind and allow you to focus on growing your business.


In conclusion, starting a business from home can be a rewarding experience, but it also comes with risks. Having the right insurance coverage can protect you from those risks and give you peace of mind. It is important to talk to an insurance agent to determine the specific types of insurance you need for your home-based business. Remember, investing in insurance is investing in the future of your business.

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