More Floridians than ever are running businesses from home. Whether you sell products online, offer consulting services, or freelance, your homeowners insurance probably does not cover your business activities.
What Homeowners Insurance Does Not Cover
Standard homeowners policies typically:
- Exclude business equipment beyond $2,500
- Do not cover business liability claims
- Exclude inventory and products
- Do not cover business interruption losses
- May void coverage entirely if business activities cause damage
Coverage Options for Home Businesses
Homeowners Endorsement
For small, low-risk businesses, you may be able to add an endorsement to your homeowners policy. This might cover:
- Additional business equipment
- Some liability protection
- Limited inventory coverage
Cost is usually $50-250 per year, but coverage is limited.
In-Home Business Policy
A step up from an endorsement, this provides more comprehensive coverage:
- Higher equipment limits
- Business liability coverage
- Inventory and supplies
- Loss of income coverage
- Accounts receivable protection
Business Owners Policy (BOP)
For more established home businesses, a full BOP offers:
- General liability coverage
- Business property coverage
- Business income coverage
- Equipment breakdown
- Professional liability options
Professional Liability Insurance
If you provide professional services (consulting, accounting, design, etc.), you may need:
Errors and Omissions (E&O)
Covers claims that your professional advice or services caused financial harm to a client.
Professional Indemnity
Similar to E&O, protects against claims of negligence in professional services.
Product Liability
If you make or sell products, product liability insurance covers:
- Injuries caused by your products
- Property damage from your products
- Legal defense costs
- Settlements and judgments
Cyber Liability
If your business handles customer data, consider cyber liability for:
- Data breach notification costs
- Credit monitoring for affected customers
- Legal expenses
- Regulatory fines
- Business interruption from cyber attacks
Vehicle Use for Business
If you use your personal vehicle for business:
- Deliveries, client visits, or errands may not be covered
- Personal auto policies often exclude business use
- You may need commercial auto coverage
- At minimum, add business use to your personal policy
Determining Your Coverage Needs
Consider:
- Do clients visit your home?
- What equipment do you use?
- Do you keep inventory?
- What services or products do you provide?
- Do you have employees or contractors?
- How much revenue does your business generate?
Running a home business? Contact us for a coverage review tailored to your situation.
