Remote work is the new normal—and for many, so is running a business out of a spare bedroom, garage, or basement. Whether you’re launching a full-time consulting firm, hosting piano lessons in your living room, or selling handmade goods online, home-based business activity can pose serious insurance gaps that standard homeowners policies often don’t cover.
At Conexus Insurance Partners, we help clients protect not just where they live—but how they work. Here’s what every home-based business owner should know about protecting their space, assets, and livelihood.
Why Home-Based Business Coverage Matters
Most homeowners policies are designed to protect personal property and residential liability—not commercial exposure. That means if you’re running a business out of your home, you could face out-of-pocket losses if something goes wrong.
Some common gaps include:
- 💻 Business equipment (e.g., computers, printers, tools) beyond limited coverage caps
- 📦 Inventory stored at home or in an outbuilding
- 👩🏫 Client or delivery-related liability (e.g., if a customer slips on your front step)
- 🌐 Cyber liability risks from online transactions or data collection
- 🔌 Business interruption from property damage (e.g., a power surge or fire halting operations)
Who Needs to Pay Attention?
You might need additional coverage if you:
- Operate an LLC, sole proprietorship, or side hustle from home
- Store business inventory or supplies on-site
- See clients or customers in person at your home
- Ship products or conduct e-commerce
- Use specialized tools or expensive equipment
- Offer licensed services such as tutoring, consulting, therapy, or hair styling
Even if it’s part-time or just getting off the ground, any business activity can introduce risks that fall outside your standard policy.
Coverage Options to Consider
✅ Home-Based Business Endorsements
Some insurers offer endorsements that extend limited business coverage to your homeowners policy—ideal for low-risk, part-time operations.
🏢 In-Home Business Insurance
A standalone policy that provides higher limits and tailored protections for business property, liability, and loss of income.
🔒 Cyber Liability Coverage
Essential if you collect client data, process online payments, or use cloud-based systems.
📦 Commercial General Liability or BOP (Business Owners Policy)
For higher-risk or higher-revenue operations, these commercial policies provide broader protection and are often required by lenders, landlords, or partners.
Conexus Insight
We’ve seen it before—clients assume their homeowners policy “probably” covers their business gear or side hustle. Then a theft, fire, or customer injury turns into a coverage denial. The reality is that most homeowners policies only cover a few thousand dollars of business property, if any, and exclude liability tied to commercial activity.
A quick conversation with your insurance advisor can uncover blind spots and help you avoid unpleasant surprises.
Let’s Talk Next Steps 👇
- Take inventory of any business equipment, supplies, or inventory kept at home.
- Think through how customers, clients, or partners interact with your business at your property or online.
- Connect with Conexus—we’ll review your homeowners policy and business needs to help you determine the right coverage structure.
This content is intended for informational purposes only and should not be construed as legal or insurance advice. Coverage options vary by carrier and state. Please consult a licensed insurance professional to review your specific risk profile.