ABA Family Legal Guide

Forming and Operating a Small Business

Starting a Business

Working from Home

If I'm running a business from home, does my ordinary homeowner's insurance cover my business equipment?

Not necessarily. You'll have to read your policy to be sure. Often, the policies exclude business use. You can probably upgrade yours to cover the increased risks caused by the business. You'll pay a little more for a business rider, but the peace of mind will be worth it.

Certain home businesses--for example, those that store a pricey inventory or attract a lot of people coming and going through the premises--might have to get a special policy. Some companies offer a homework policy that combines homeowner's insurance with business protection. If that's not available, work through your insurance agent to get your business protection through the same company as your homeowner's or tenant's policy. That should enable you to tailor the business policy to cover only the increased risks caused by the business, so you won't have to pay double for the same protection.