If you operate a business out of your home, you should be warned that typical homeowner’s insurance will not cover you in the event of a loss. This is particularly poignant for those businesses that carry inventory or operate expensive equipment because a flood, fire, or burglary could result in potentially high losses that you normally would turn to insurance for. Also, if you meet with customers, suppliers, or other clients, injuries they may suffer while on site may also not be covered by your basic homeowners policy.
To be sure, check your policy to see what the limits on liability are from your insurance provider and the keywords you should be on the lookout for are limits to coverage of business equipment and business liability insurance or coverage. For example, your coverage may say that they cover up to $2500 of business equipment and offer no business liability insurance. If that makes sense for your type of business then you should be fine, but if your business meets with clients very often or you have expensive equipment or inventory, you’ll want more.
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