Business Coverage: Why Your Home-Based Business Needs Insurance

If you can, think back to the days when you HAD to fight traffic and commute to work each day… those are now distant memories in this day and age. People definitely still commute to work each day but more and more people are ditching their 9 to 5 jobs and becoming small business owners.

The majority of small business owners tend to solely run and operate their business out of the comfort of their own home. In fact, according to, it’s predicted that e-commerce will make up 17% of US retail sales by 2022. So it’s quite obvious that home-based businesses aren’t some “here today gone tomorrow” type of trend that we’ve all seen a million times… home-based businesses are here to stay with no chances of slowing down any time soon.

The “Lax” of Home-Based Businesses

With home-based businesses, you can only imagine the level of “lax” a business owner is exposed to. You have the luxury of not having to commute, wearing whatever you want to wear because you’re at home, and the ability to work when, and as often as you like…

Owning a home-based business is the epitome of a relaxed environment, as most might think, but being too “laxed” can cause you to get lazy in other areas of business that requires your full attention.

One of the biggest areas where business owners get too “laxed” is in obtaining business insurance. Business insurance is one of the most important parts of running a business, and it’s definitely one of the major factors you don’t want to forget on your small business checklist, yet it oftentimes is.

Most home-based business owners feel that because they run their business from their home that they don’t need business insurance. For some reason, they think that because they have homeowners insurance that their business will be covered under that… that’s a huge misconception.

In fact, most homeowners’ insurance policies make it very clear that if you’re running a business from your home, that any property in the home will not be covered for damages if it relates to your business… but homeowners seem to overlook that somehow. That’s why you need to ensure the safety of your business and purchase business insurance.

Yes, it’s another expense to add to all the other expenses your business has acquired but business insurance isn’t extremely expensive… it’s actually quite affordable and a lot better than paying thousands of dollars in damage to equipment if your home was flooded or caught on fire.

Take a look at some of the biggest reasons why your business needs business insurance.

Legal Protection

Again, just because you run and operate your business from your home doesn’t mean that your homeowners’ insurance is going to protect your business. You have to think outside the box when it comes to protecting your business.

Things like libel and intellectual property are things that can do a great deal of damage to your business but a homeowner’s insurance policy won’t do anything to protect your business from that, even though it’s run from your home.

What if someone tries to sue you because of a breach in data? Hackers are getting smarter by the minute and are finding more and more ways to hack into networks and steal sensitive data from small businesses.

If a hacker got access to your computer’s network and gained all of your customer’s information, that customer would have every right to come for you legally… with business insurance, your business will be protected in instances like that.

Adds Credibility to Your Business

Credibility is a benefit of business insurance that not too many business owners have even thought about. A lot of small business owners will typically have a side hustle and want to turn it into their full-time business but face the issue of getting people to take it seriously…

Well, by purchasing business insurance, you’re letting customers know that they’re making a smart shopping decision by shopping with you because if anything were to happen, they’re in good hands for compensation.

It Keeps Your Business “In Business”

When you’re a homeowner and especially as the owner of a home-based business, natural disasters are things that you don’t want to have to worry about but planning for them is not only important for your home but also for your home-based business.

Business insurance covers damages to your business properties but what about the income lost during the time your business is closed due to the natural disaster? Business owners don’t even think about that. Some business insurance policies have what’s called business owner’s insurance which is the protection of income in the event of a natural disaster comes and temporarily puts you out of business.

With this type of policy, your business will still be able to survive and will be compensated for expenses of the daily operations of your business.