Insurance for Home-Based Businesses
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Business owner’s policy for home-based businesses

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Business owner’s policy

A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately.

A BOP bundles policies to protect home businesses

A business owner’s policy is a popular, affordable choice for home-based business owners. This policy guards against the most common risks facing home businesses, including injuries and property damage. A BOP combines general liability insurance and commercial property insurance at a lower rate than purchasing them separately.

General liability insurance provides coverage for third-party injuries or property damage for which you might be found liable. Commercial property insurance shields your business property, equipment, and inventory from damage or loss.

A BOP safeguards against:

  • Damage to business property
  • Customer injuries and property damage
  • Advertising injuries
  • Forced closure

Customize a BOP to fit your home business

Home-based business owners can tailor a BOP to meet their specific needs. Useful additions might include business interruption insurance or other endorsements.

Small, low-risk businesses usually qualify for a BOP, such as:

  • A DJ who brings equipment to different venues
  • An artisan who rents booths at local craft fairs
  • A baker who makes wedding cakes at home

Talk to a licensed Insureon agent to learn more about how a BOP could benefit your home business.

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What coverage can a BOP provide for home businesses?

Damage to business property

A BOP typically includes commercial property insurance that protects:

  • Business equipment
  • Inventory and supplies
  • Office furniture and fixtures
  • Your building if you own it

This policy also covers the cost of renovating your home office, kitchen, or other property after a fire, even one that began in another building.

Customer injuries and property damage

The general liability portion of a business owner’s policy can pay for legal bills and other expenses related to third-party injuries or property damage. For example, it can offer coverage in the following scenarios:

  • A client trips over a box of files at a virtual assistant's home office
  • A deliveryman slips on an icy front step while dropping off a package at a home business
  • A performer places candles around a stage and accidentally starts a fire

General liability insurance typically includes product liability insurance, which can help pay for lawsuits over harm caused by a product that you sold, manufactured, or distributed.

Advertising injuries

The general liability portion of a BOP also provides coverage against advertising injuries, including:

  • Libel (written defamation) and slander (spoken defamation)
  • Copyright infringement

For instance, if a DJ writes a negative review about a rival company and is sued for libel, a BOP could help pay the resulting legal costs.

Forced closure

A temporary closure can lead to long-term financial issues, especially for a home-based business owner. Business interruption insurance protects you from lost revenue and other expenses related to closure caused by a covered loss.

For example, if a fire destroys your home bakery, it may take several weeks to renovate and acquire new kitchen equipment. Business interruption insurance would compensate you for normal operating costs and lost profits, allowing you to pay your employees and cover your business expenses during the disruption.

Other policies for home-based business owners

A business owner’s policy offers wide-ranging protection for a home-based business, but it doesn’t provide coverage for all risks. Business owners should also consider:

Professional liability insurance: Also known as errors and omissions insurance (E&O), this policy covers legal costs of lawsuits related to your work performance.

General liability insurance: General liability insurance can pay legal expenses related to customer property damage and injury, along with advertising injuries such as slander.

Get free quotes and buy online with Insureon

Are you ready to safeguard your home-based business with a business owner’s policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

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