Home-based business insurance protects your home business from damages, losses and liabilities that may occur in your home as a result of the business that you conduct. Some things commonly covered include your office equipment, client liabilities, and business interruption if your home is ruined and renders you incapable of running your business as you otherwise would.

A home-based business insurance policy can be added to your property insurance as an endorsement to protect your business. It's important to note that different insurance companies may not all offer protection for the same type of business. Instead, they will have a list of specific businesses they will cover. If your business does not fit into one of those categories, then you will need a commercial business insurance policy—even if the business is registered to your home. Many homeowners don't realize they need some sort of home-based business protection if their business is registered to their home, regardless of the business they operate. Your business will need a home-based business insurance endorsement or commercial insurance coverage.

For example, if you make handmade products out of your home that you sell online, a small home-based business insurance policy will likely provide adequate coverage. However, you will likely need a commercial policy if you work as a plumber. This is because plumbers tend to make more income than craft-based businesses, so they need more coverage that's not necessarily offered under a home-based business insurance policy.

All business owners operating their businesses out of their homes should strongly consider home-based business insurance. Ontario home business owners can encounter costly problems that require adequate financial support to overcome issues such as stolen equipment, clients can sue, and damages to your home can prevent you from conducting your business. Don't let business risks like these hinder your growth. Get the right coverage you need to be protected by letting the brokers at Morison Insurance start a home-based business insurance quote.

If your business is registered to your home, you must disclose this to your insurance carrier and broker. Otherwise, you won't have any protection if a third party decides to sue you. The person filing the suit can go after your home—not just your business. Also, if you don’t notify your broker, it’s possible that they could cancel your policy.

When you begin a home-based business insurance quote, the brokers at Morison Insurance will ask questions to determine if you need commercial or personal insurance coverage. Adding this coverage to your personal coverage is inexpensive; a basic package can cost as little as $100 and go up to $600. Commercial coverage for home-based-business insurance generally offers more robust coverage from a commercial perspective and typically starts around $750 and goes up from there.

Typically, a home-based business insurance policy in Ontario will not include errors and omissions insurance. Also known as professional liability or malpractice insurance, this coverage is critical for professionals. However, depending on your insurance provider, it's usually purchased through an association or as extra coverage. It can also be included in some commercial insurance policies.

Professional liability insurance protects individuals from being sued because their clients lost money due to bad advice, breaking a contract, alleged negligence, misconduct and failure to deliver services as promised.

Home-based business insurance usually covers more than just general liability, although general liability coverage can be included in this policy. To run your home business safely, you will likely need more than just general liability coverage. While it protects you from being sued because a third-party was injured on your property or your business operations damaged their property, most entrepreneurs need extra coverage—such as business property protection and personal liability.

Most homeowner's policies do not cover any property damages to your home resulting from a business-related activity. For instance, if you use metalsmithing tools to make jewelry out of your basement and these tools cause a fire and destroy part of your home, you will most likely not be covered by your homeowner's policy. Instead, check to see if your home-based business insurance policy will protect you from this risk.

If you offer professional services, you need errors and omissions insurance. Professional liability insurance is vital if your business relies on advising clients, such as accountants, therapists and consultants. Without it, you may wind up in serious legal trouble should a client allege they lost money due to bad advice, failure to deliver services as promised, alleged negligence and more. Don't take business risks. Make sure you have proper coverage by speaking with one of our qualified Morison Insurance brokers.

No, you do not need home-based business insurance coverage to work from home—unless you are an entrepreneur whose business is registered to your home. If your company has transitioned to working from home, you do not need additional coverage to protect yourself. You should talk to your insurance broker if you have concerns about a laptop or other expensive equipment theft. These high-value items are likely protected under your standard homeowner's insurance policy.