According to Small Business Association statistics, 50% of small businesses are home-based. While not all of these businesses have inventory or foot traffic, all have some type of exposure that may or may not be covered on the homeowner’s policy.
For example, any personal property used for the business including computers, cell phones, storage and equipment have limited coverage both on and off premises. The standard limit for business property is $2500 on premises and $1500 off premises. Inventory or undelivered products are not covered on a standard home policy but may be available through your carrier for additional premium.
Many people conduct business activities as defined by the homeowner’s policies without even knowing that there is a business risk involved. If you have a hobby that generates income, you have a business exposure that needs to be protected. If you have people come to your home or you go to theirs, you can be held liable for any injuries to the other person while conducting business. Coverage for liability as well as inventory, undelivered products and additional property coverage is best found on a business owner policy through commercial insurance. Contact your agent for additional details about whether a business policy would be a good fit for you.