Business
Home-Based Business Insurance
Published September 24, 2026 · Last updated October 1, 2026
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The short answer
If you run a business from home, your homeowners or renters policy probably won't cover it well. A typical homeowners policy covers only about $2,500 of business equipment, and it usually doesn't cover business liability at all. If a client falls on your front steps on the way to a meeting, or your laptop full of client work is stolen, you could be on your own.
Here are your options, from a cheap add-on to a full business policy, and what each one costs.
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What your homeowners policy leaves out
According to the Insurance Information Institute:
- Business equipment is capped at about $2,500. That may not cover one good computer, a camera kit, or a stock of inventory.
- Business liability is usually excluded. Injuries to clients, customers, or delivery people tied to your business generally aren't covered.
- Lost business income isn't covered. If a fire shuts down your home office, a homeowners policy won't replace the income you lose.
If you rent, the same gaps usually apply to your renters policy.
Your four options, from smallest to biggest
1. A homeowners endorsement
An endorsement is an add-on to your existing policy. For as little as $25, you can often raise business equipment coverage from $2,500 to $5,000. Some insurers let you go up to $10,000, in $2,500 steps.
Some insurers also offer a liability add-on, but usually only for businesses with few business visitors, like writers.
Good for: freelancers with some equipment and almost no clients coming to the house.
2. An in-home business policy
This is a step up. It typically adds:
- More coverage for business equipment
- Lost income and ongoing expenses if a disaster shuts you down
- Broader liability coverage
Good for: small businesses with a few client visits or more equipment.
3. A business owner's policy (BOP)
A business owner's policy bundles general liability with coverage for business property and lost income. It's broader than an in-home policy. It doesn't include workers' comp.
Good for: growing businesses, businesses with inventory, or anyone a client or landlord asks to show proof of business insurance.
4. Specialized coverage for certain businesses
The Insurance Information Institute notes that some home businesses need more:
- Professionals like consultants, designers, and bookkeepers may need professional liability for mistakes in their work.
- Food businesses and makers of personal care products like soaps and lotions often need specialized product liability coverage.
- Businesses that store customer data may want cyber insurance.
What home-based business insurance costs
Here's what home-based businesses that bought through Insureon paid per month, at the median:
| Policy | Per month |
|---|---|
| General liability | $42 |
| Workers' comp | $48 |
| Professional liability | $49 |
| Business owner's policy (BOP) | $58 |
| Cyber insurance | $64 |
| Commercial auto | $191 |
Not a quote or an offer. Your price comes from the insurance company. Source: Insureon, updated July 1, 2026 (median for its home-based business customers).
The homeowners endorsement is often the cheapest option, but it also covers the least.
Don't forget these
- Your car. If you drive for your business, like making deliveries or visiting clients, your personal auto policy may not cover business use. Ask your insurer, or see commercial auto insurance.
- Employees. Most states require workers' comp once you hire, even if they work in your home.
- Licenses and zoning. Your city or county may require a license for a home business. See business license.
- Tell your home insurer. Not mentioning a business could cause problems with a claim.
Keep reading
Just getting started? See business formation costs and what a DBA is.
Core business insurance: Small business insurance cost · General liability · Workers' comp · Business owner's policy · Professional liability · Commercial property · Cyber insurance · LLC insurance · General liability vs. a BOP · All business services
Protect your home too: Homeowners insurance · Renters insurance
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