Owning your own business not only means bearing full responsibility, but it also means heavy financial investment. Even if you have a comprehensive home insurance policy, chances are it does not cover your home office or business equipment. In this case, you’ll need to purchase separate policies to make sure you’re protected in the event of losses. 

4 Types of Insurance for Home Businesses 

1. General Liability

If you frequently have clients and customers come to your home, invest in general liability coverage. This policy protects against lawsuits filed by third parties who were injured or suffered property damage while on your premises. It covers legal costs, lawyer’s fees, and any damages awarded in court. Litigation can be expensive, even for minor issues. Without it, these costs will fall on you. 

2. Professional Liability

Professional liability also covers legal costs, but it’s used for businesses that give advice. For example, if an accountant provides financial guidance to a client who then loses money, that client may attempt to sue the accounting business for their loss.

3. Commercial Vehicle Coverage

Standard auto insurance doesn’t cover accidents that occur when using a vehicle during the course of business. Commercial coverage does and it can extend to any employees you have driving on your behalf. These policies cover injuries and damage to other cars or drivers, as well as damage to your vehicle. 

4. Business Property Coverage

While personal belongings are covered by homeowner's policies, business equipment is usually not. High-functioning computers, high-capacity printers, and other technology can be expensive to replace. Business property helps cover repairs and replacements in the event of vandalism or fire- or weather-related damage so you can continue your home business uninterrupted.