Running a business from home
The house is insured. The business is not.
A homeowners or renters policy is written for residential use. Working from home is normal enough now that almost nobody checks what that means, and for most people it means nothing at all.
For anyone holding equipment or stock, or receiving visitors, it means two specific gaps — and neither is visible from anything on the policy.
Gap one: business property
Business property at the home is usually covered only to a small stated limit — a category cap like jewellery or cash, and typically a low one.
That catches anyone with real equipment or stock: a photographer's kit, a maker's materials, a reseller's inventory, a tradesperson's tools. It is not a percentage of your contents; it is a separate small figure.
It is on the declarations page. Comparing it against what the business actually holds usually takes a minute and produces a clear answer.
Gap two: business liability
The bigger one. Business liability is generally not covered by a home policy at all, so an injury to a visiting client is outside it even though it happened in your hallway.
The same applies to any claim arising from the work rather than the residence — an allegation that your product or service caused harm or loss.
Where anyone comes to the property for business reasons, including deliveries and collections, this is the gap that matters.
The endorsement, and where it stops
For a small operation, a home business endorsement on the existing policy is often enough and is inexpensive. It typically raises the business property limit and adds a modest amount of business liability.
It stops being enough when the business grows past what a residential policy is willing to contemplate: significant stock, employees, regular customer visits, or professional exposure.
At that point the answer is a business owners policy or separate covers — general liability where people come to you, professional liability where you sell judgement.
Things people miss
Two practical points that come up repeatedly and neither is obvious.
A landlord or association may have its own view about business activity at the property, quite separately from the insurance question. Where a lease or the governing documents restrict it, an insurance policy does not resolve that.
And if you employ anyone — including part-time help, and sometimes family — the workers' compensation question arrives at home exactly as it would anywhere else. Most states require cover once there are employees, and the address does not change that.
Common questions
Only to a small stated limit for business property, and generally not at all for business liability. Those two gaps are what a home business endorsement or a business policy addresses.
Generally not by a home policy, because it is business liability. This is the most common reason a home-based business needs cover of its own.
For a small operation, often. It stops being enough where there is significant stock, employees, regular customer visits, or professional exposure — at which point a business policy is the answer.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.