Home-Based Business Insurance Chilliwack

If you own a home-based business, it is important to keep in mind that most home insurance policies do not cover commercial activities and that, in some cases, your home policy may be voided if have not informed your insurance company that you are running a business out of your home. At Wheeler-Homemakers Insurance, we understand how important it is to choose the right home-based business insurance policy for your unique needs. Reach out to us today to find out which business insurance policies will work best for your home business.

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Types of Home-Based Business Insurance

Some of the different types of home-based business insurance policies you can choose from include but are not limited to:

Liability Insurance

Home-based business liability insurance is specifically designed to protect your business from costs associated with claims made for property damage or bodily harm. Since there are several different types of liability insurance policies that you can choose from for your business, it is important to work closely with your insurance provider to determine which policies will work best for your business and industry. Some of the different types of home-based business liability insurance you can choose from include:

General liability—protects yourself, employees, clients, and other business visitors if you are legally liable for someone being injured on your property
Product liability—provides protection for the business against if the business' products are defective or cause serious harm to the user.
Professional liability—also called errors and omissions insurance (E&O) or malpractice insurance, protects against legal action resulting from an omission, error, or professional negligence.

Property & Inventory Insurance

In the event that your home-based business is impacted by a flood, fire, storm, natural disaster, vandals, or thieves, property insurance will help cover the cost of replacing or repairing your workspace, stock, inventory, and computers.

Tools & Equipment Insurance

If you run a construction or trade business out of your home, having coverage for the tools and equipment you store at home or leave on jobsites can save you a lot of stress and money in the long run. This type of insurance can also include a policy that provides coverage for any tools or equipment after it has left your property until it reaches its destination.

Cyber Insurance

While cyber insurance can be a fairly diverse policy, most home-based businesses purchase this type of insurance to provide coverage if the business falls victim to a data breach. Having cyber insurance can help protect your business if customer information is compromised, as well as help notify your customers and provide credit monitoring.

Business Income Insurance

Business income insurance can help cover lost income and expenses in the event that your business has to shut down due to a covered peril. In most cases, the business income that is covered is classified as taxable and includes any revenue that is generated from business-related activities.

Home-Based Business Insurance FAQs

What is Home-Based Business Insurance?

Home-based business insurance, also known as home business insurance, is specifically designed to provide coverage for your business' office furniture, equipment, inventory, and merchandise. Home business insurance policies can help protect your business' physical property, financial assets, and intellectual property from a wide range of covered losses, including:

Fire damage
Storm damage
Theft
Vandalism
Property damage
Lawsuits
Loss of income

If your home business is run by only one or two people, home-based business insurance can be purchased as an extension of your home insurance policy; however, if your home business is larger, you many need to consider purchasing a standard business insurance policy. Make sure to speak with your insurance broker to find out what type of home-based business insurance policy will work best for your business and whether or not you should opt for a standard business policy.

Do You Need Home-Based Business Insurance?

If your current home insurance policy does not cover potential damages caused by the business you operate in your home, you should get home-based business insurance. Doing so will help mitigate the risks of running a business at home, as well as provide you with complete peace of mind that both your business and home are properly covered.

How Much Does Home Business Insurance Cost?

While most standard business insurance plans can cost anywhere from $300-$1700, the total cost of your home-based business insurance will vary, depending on if you are able to add onto your current home insurance policy or if you will need to purchase standard business insurance. The total cost will also depend on the business' size, industry, sector, and type. Your insurance broker can help you choose the right home business insurance policy for your needs and budget.

Is Home Business Insurance Mandatory in BC?

While home-based business insurance is not mandatory in BC, it is imperative your home insurance company is aware of any business activities happening in the home. Having proper insurance for your home business can help protect you in the event of a lawsuit, accident, or natural disaster. It is also important to note that certain businesses may be required by law to have WorkSafeBC coverage.