Types of home business insurance coverage
Several types of coverage make up the category of home business insurance, including general liability insurance, professional liability insurance, and workers’ compensation insurance.
Here’s a rundown of the kinds of insurance you might want to consider if you run a home business.
General liability insurance
General liability coverage protects your business against financial losses triggered by injury, property damage, medical expenses, libel, slander, lawsuit defense, court judgments, or settlement bonds.[1] For instance, if a customer breaks their arm while visiting your business, this policy might pay their medical bills.[2]
Professional liability insurance
Professional liability insurance protects you from financial losses arising from situations such as malpractice, errors, or negligence. For example, this coverage might benefit a massage therapist sued by a client over alleged skin damage.
Business property insurance
Property insurance protects your business in the case of damage to commercial property resulting from various events. These events include fire, smoke, hailstorms, windstorms, and vandalism. Property such as business equipment, furniture, and inventory might fall under this coverage umbrella.
Keep in mind that a business owner’s policy combines business property and business liability insurance into one package.
Business interruption insurance
Business interruption insurance, also known as business income insurance, protects against financial losses if a business shuts down due to property damage caused by a disaster. For example, a business might file a business interruption claim if a fire heavily damages the business’ property.
Workers’ compensation insurance
Workers’ compensation insurance covers medical costs and lost wages for employee injuries at work. For example, this coverage might kick in after a worker breaks their wrist by slipping and falling in a home office.
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