Operating a home-based business creates daily risks of loss. Whether you sell products online, provide professional services, or run a small shop from your residence, your standard homeowner’s insurance policy likely provides minimal coverage for business property and no business-related liability protection.

United States Liability Insurance offers a Home Based Business Product that covers general liability, property, and business income — giving home-based business owners the protection they need.

6 Claims Examples That Show Why You Need Home Business Insurance

Here are six real-world scenarios that demonstrate why dedicated home-based business insurance is essential:

1. E-Bay Inventory Destroyed by Fire

A home-based e-commerce seller stores thousands of dollars worth of inventory in their garage. A fire breaks out and destroys the entire stock. A standard homeowner’s policy typically limits business property coverage to just $2,500 — far less than the actual loss. A home-based business policy would cover the full value of the inventory.

2. Customer Slip-and-Fall at Your Home Business

A customer visits your home office and slips on the front steps, suffering a serious injury. Your homeowner’s policy may deny the liability claim because the visitor was there for business purposes. A home business policy provides the general liability coverage needed to handle such claims.

3. Stolen Laptop While Visiting a Customer

You take your business laptop to a client meeting, and it gets stolen from your car. Your homeowner’s policy may not cover business equipment stolen away from the residence. A home-based business policy extends coverage to your business property even when it’s off-premises.

4. Trade Show Display Accident

You set up a display at a local trade show, and it falls over, injuring an attendee. Without business liability coverage, you could be personally responsible for medical bills and legal costs. A home business policy provides liability protection for business activities conducted away from your home.

5. Equipment Damage to LLC-Owned Business Property

A power surge damages your expensive business equipment — computers, printers, and specialized tools. Your homeowner’s policy won’t cover equipment owned by your LLC or used primarily for business. A home-based business policy protects your business assets from covered perils.

6. Fire Causes Business Shutdown and Lost Income

A kitchen fire forces you to close your home-based business for weeks during repairs. You lose significant income during the shutdown. A home-based business policy with business income coverage can replace the income lost while your business is unable to operate.

Bonus: Equipment Breakdown and Spoilage

You run a home bakery, and a power surge damages your commercial refrigeration equipment, causing all your perishable supplies to spoil. Equipment breakdown and spoilage coverage — available through a home-based business policy — can cover both the equipment repair and the lost inventory.

Protect Your Home-Based Business Today

Don’t assume your homeowner’s policy is enough. A dedicated home-based business insurance policy provides the comprehensive coverage you need to protect your livelihood. Contact your insurance provider to learn more about coverage options tailored to your specific business needs.