A standard homeowner’s insurance policy does not cover business insurance for home-based businesses. Items such as vehicles for business travel, laptops, inventory loss of business income, legal expenses and general liability are not covered by a standard homeowner’s insurance Home-based business coverage is an extension of the standard home insurance that covers these and more. If your business is bigger than the involvement of two people, you will need to consult your financial advisor for additional coverage that includes liability for delivery personnel, staff and clients etc. But if you work from a designated office space in your home, you may be eligible to claim coverage for your business through your home insurance. This includes office equipment such as computers, laptops, printers, notepads, business cards, books etc.
Who is Eligible for Home-Based Business Insurance?
It is important to be aware of what can be covered and what cannot. There are a few options available to insure home-based businesses based on your occupation.
This coverage is best suited for an individual or partnership between two people who do not have too many pieces of equipment of high value and do not have clients visiting them in their home office. In the event of a disaster, such as a fire, the damages incurred should not be too heavy. It is best suited for small business and partnerships in marketing, freelancers, accountants, sales people or retailers selling a modest number of products or services from their home.
You can opt for a business owner insurance policy or commercial insurance policy, even if you have a part-time business. This is a little more expensive but it covers the entire property as well as services, such as business operations out of the property. Contractors or landscapers fall in this category. They have a fair amount of equipment at home but not every tool holds high value, and they travel for their project operations to other locations for which they can claim liability.
Errors & Omissions Insurance is better suited for those who work for the government or through individual contracts or professional services such as authors, event organizers, translators, marketing consultants, Directors or Officers etc. If you have frequent clients visiting you or need to cover business inventory, then home-based business coverage is required .
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Insurance can be complicated but the right insurance brokers can make it simple. We are experienced insurance brokers in Canada, located in Alberta and Ontario, growing fast, thanks to our excellent coverage plans and personalized customer service at competitive prices. Our commitment to our clients have made us a leading Insurance Brokerage for nearly 40 years, recently being awarded The Top 10 Brokerages in Canada. Please call us for any help in your insurance needs or for a no-obligation quote request form. We will save you time and money with our customized plans with award winning advice
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