Innovations in technology have made it possible for increasing numbers of individuals to operate small businesses from their homes. Those small business owners who have availed themselves of these new technologies should make it a priority to ensure that their liability, business equipment, inventory, and other assets and risks are insured appropriately. While homeowners and renters insurance specifically does not cover most home-based business activities, a “home-business” endorsement to either policy covers many potential losses. It does not, however, cover liability losses related to a home business. To get that coverage, it is necessary to move up to a “small-business insurance package” that protects business property at home and away. It also covers theft liability and some loss of income.
NOTE: A basic “business-owners policy” offers more liability coverage than a small-business insurance package in addition to expanded loss-of-income protection.