Top Home Business Insurance Providers in 2023

If you’re an entrepreneur or small business owner operating out of your home, you understand the importance of protecting your venture. In this blog, we’ll delve into the intricacies of home business insurance, shedding light on crucial aspects such as cost, coverage, and, most importantly, the top providers who can help safeguard your entrepreneurial dreams. Whether you’re just starting or looking to review your existing coverage, this guide is your roadmap to making informed decisions that ensure your home-based business thrives in any situation.

What is Home Business Insurance?

Home business insurance is a specialized type of insurance designed to protect individuals who operate their businesses from their homes. It provides coverage for various risks and liabilities associated with running a business out of a residential property. This goes beyond the standard homeowner’s insurance, which offers limited to no coverage for any business-related activities on residential premises.

There are several types of home business insurance – including general liability insurance, professional liability insurance, commercial property insurance, or workers’ compensation. Depending on the nature of your business and day-to-day business activities, you will need some or all of these coverages.

How Home Business Insurance Works?

Home-based business insurance operates by providing expanded coverage limits for both property and liability, addressing business-related situations that a standard homeowners policy can’t adequately handle. It fills the gaps left by homeowners insurance, ensuring your interests are protected where they would otherwise be vulnerable.

For instance, in the event of a customer sustaining an injury while visiting your home business, the insurance steps in to offer comprehensive coverage, safeguarding your business. This coverage encompasses general and professional liability, commercial property, and even workers’ compensation, providing a robust shield for your home-based venture.

Types of Home-Based Business Insurance

Business owners operating out of their homes can choose from several home business insurance policies to get coverage for their home businesses. The home-based business insurance type best suited for your business depends on the nature of your business and its day-to-day activities. Depending on your needs, you can choose one – or several – of the following insurance for your home business:

Type of Insurance	What It Covers
Commercial General Liability Insurance	1. Legal fees and judgments in case of lawsuits a. Property damage b. Personal or advertising injury c. Product liability 2. Medical bills for non-employees  on premises
Professional Liability Insurance	1. Legal fees and judgments in lawsuits a. Negligence b. Misrepresentation c. Inaccurate advice o Violation of good faith and fair dealing
Business Personal Property Insurance or Commercial Property Insurance	Damage or theft of business-related property  (including equipment, inventory, or documents within the property)
Business Interruption Insurance	Lost income after a covered peril (theft or fire)
Business Owner’s Policy	Combined coverage of commercial property insurance, general liability insurance, and business interruption insurance
Commercial Auto Insurance	Accident coverage if you use a personal vehicle for business purposes
Workers’ Compensation Insurance	Medical bills and lost wages of employees injured 1. On business premises 2. Performing job duties on third-party location
Cyber Insurance	1. Lost or corrupt data 2. Identity theft 3. Cyber extortion 4. Reputation recovery 5. Different data and privacy-related liabilities 6. Business interruption due to cyber incidents
Homeowners Policy Endorsement	Combines basic business property and limited liability coverage with homeowners policy coverage

Costs of Home-Based Business Insurance

The cost of a home-based business insurance policy varies greatly with the types of coverage you want to purchase and the nature and average risks of your business.

For example, for a low-risk business, the general liability insurance can start as low as $11 per month with a homeowners policy endorsement can sufficiently cover your business equipment. However, a business needing more coverage – workers’ compensation, commercial auto insurance, or cyber insurance – may need to pay hundreds of dollars per month to secure necessary coverage.

Top Home Business Insurance Providers

When it comes to finding the best small business insurance companies, several factors come into play. Choosing the right coverage – with affordable premiums – is crucial for any home-based business. You need to consider – among other things – the nature of your business, the day-to-day activities of your employees (if present), and overall business-related risks to find the right insurance provider for you. Here are five of the best home-based business insurance providers for you to consider:

Next Insurance

Overview

Next Insurance covers over 1000 types of home-based businesses across the US. In addition to offering a wide variety of policies – with the option to customize it for your business size – Next Insurance is one of the best insurance providers for your home-based business.

The Hartford

Overview

The Hartford is one of the best insurance providers for service professionals like accountants, consultants, and architects. It offers specialized professional liability coverage with flexible limits and accessible claim services. You also have the option to add workers’ compensation, employment practice liability, and cyber insurance coverage to protect your business better.

Hiscox

Overview

Hiscox offers the best coverage for ones who primarily work at client locations – like painters or handypersons. Hiscox specializes in smaller businesses – like single-operation professionals – to meet their general liability, professional liability, or commercial property coverage needs.

Thimble

Overview

Thimble is the best home business insurance provider for businesses with seasonal fluctuations in coverage needs. Such short-term, customizable, and instantly available coverage is best for businesses involved in planning special events or vendors working at these events.

BiBerk

Overview

Due to their underwriting capabilities, BiBerk offers superior financial stability and efficient claim payments. You also have the option to add non-owned auto coverage or cyber insurance endorsements for more comprehensive coverage.

Conclusion

Home-based entrepreneurs must ensure they have the appropriate insurance coverage to shield themselves and their businesses from potential risks. A homeowners policy may restrict or even deny coverage for claims related to business activities. In contrast, it is specifically designed to safeguard your business, providing essential protection against liability, safeguarding business assets, and ensuring your venture’s security.

The insurance needs of your home-based business can vary based on its nature and industry. When selecting the ideal provider, factors such as financial stability, policy customization options, ease of processing claims, and monthly premiums must be carefully considered to meet the unique requirements of your business.

Frequently Asked Questions