Does Home Insurance Cover a Home-Based Business?

Home insurance provides some protection for certain aspects of a home‑based business. It typically covers the structure of your home, your appliances, personal belongings, and additional living expenses if your home becomes uninhabitable due to a covered peril.

However, home‑based business owners in Des Moines should be aware that personal home insurance also has significant limitations. It does not cover business assets or inventory stored in your home. Even more importantly, it does not extend liability protection to incidents involving a client, employee, or business partner who is on your property for business purposes.

What Types of Commercial Insurance Does a Home‑Based Business Need?

Liability coverage is essential for nearly any business. Professional liability insurance, also called errors and omissions insurance, is especially important if you offer professional services or could face lawsuits for breach of contract or failure to meet industry standards.

If you store sensitive information on your computer, cyber insurance is worth considering. It can cover data breaches, hacks, legal fees, ransom payments, fines, IT repairs, and related costs.

Business interruption insurance is another valuable option. If you must temporarily shut down due to a covered peril, this coverage can help pay operating expenses and keep your business afloat during the downtime.

Contact Max Insurance LLC for More Information

Running a business from home can save money, but it is still important to ensure you have the proper protection in place. At Max Insurance, we serve clients in and around Des Moines, IA, and offer a variety of policies and bundles from multiple carriers.

Call us today to learn more about your coverage options or to request policy quotes.