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
- Property damage
- 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.