A group of coverages called “home-based business insurance” is meant for business owners who run their businesses from home.
You might need some or all of the coverages listed below, depending on your profession and the kind of business you do from home.
Home-based business bundles are offered by some insurance companies and may include a variety of coverages from one company to the next.
If your company is sued for damaging a customer’s property, causing a physical injury, or advertising injury, such as copyright infringement, a commercial general liability policy helps cover legal fees and judgments.
It also covers medical expenses for non-employees who get hurt on your property or while running your business. Product liability insurance, which protects businesses from lawsuits stemming from products that injure or damage customers, is an essential part of general liability insurance.
You will need professional liability insurance, also known as errors and omissions insurance (E&O insurance), if you work in a knowledge or technical field and your professional services could cause one of your clients or customers to lose money. This covers your legal defense and any judgments you receive from lawsuits based on claims of negligence, false advice, misrepresentation, and unfair business practices.
General liability policies do not cover these kinds of claims. It is important to keep in mind that although professional liability insurance can frequently be purchased as an endorsement, a business owner’s policy (BOP) does not include it.
