Commercial: Insurance for Home Based Business

If you are working a part-time, seasonal or full-time business from your home, you will  want to consider your insurance needs. Starting a business is  a challenging venture, and having the right insurance can provide financial safety and peace of mind. Visit to get a better idea of what kind of insurance you may need.

 The type of insurance should be based on the type of business you operate. For instance, if you’re business is daycare, and your neighbor is a custom builder out of his garage, then you two will have very different insurance needs than your neighbor.

1. What are the potential risks faced by your type of business?  What type of business do I run?

2. Do I use my car or other vehicles in the course of my business operations?

3. Does my business store customers’ financial and personal information on a computer or through a cloud computing service?

4.  Do customers or contractors visit my business at my home?

5.  What is the value of my business property? Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?

6.  Does my business have employees?

Business Vehicle

Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business vehicle insurance.

Property and Liability Insurance

Depending on your home-based business, you’ll need insurance to protect the value of this business from loss due to theft, fire or other perils. You’ll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:

-Stand-alone home-based business insurance policies

-Adding an “endorsement” to your homeowners policy

-A Business Owners Policy, which combines several types of coverage

Workers Compensation

If you have employees, you’ll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.

Other types of insurance may be suitable for your home-based business as well. ABM Insurance can help you evaluate your needs and select insurance to meet your budget. Call us at 1-800-362-2809 or visit