Insurance Considerations for Home-Based Businesses: What Home-Based Business Owners Need to Know About Coverage

Home-based entrepreneurs may think their homeowners policy covers business-related losses, but that may not be true. Without appropriate business insurance, mishaps like property damage or an injured visitor can result in financial strain.

Common Risks for Arizona Home-Based Businesses

Operating from home doesn’t eliminate risks. Arizona home-based businesses may face:

• Property damage from monsoon storms or wildfires
• Theft or loss of business equipment
• Liability claims from clients visiting your home
• Data breaches or cyberattacks if you handle sensitive information

Essential Insurance Coverages for Home-Based Businesses

Before choosing a policy, review your current homeowners coverage and discuss your business operations with an insurance agent to identify gaps. Consider the following types of insurance:

• Commercial property insurance may cover your business equipment, inventory and supplies from risks like fire, theft or vandalism, even if stored at your home.
• General liability insurance may help with claims of third-party bodily injury, property damage and personal and advertising injury that may occur due to your business operations.
• Professional liability insurance may cover your legal defense fees if a client alleges that your services or advice caused them financial harm.
• Business interruption insurance may help replace lost income if your home-based business cannot operate due to a covered event, such as a fire or major storm.
• Cyber liability insurance may provide financial support for data breaches or cyberattacks that compromise client information or disrupt business operations.

How Our Team Can Help

ABC Insurance & Financial Services can help home-based business owners in Tucson, AZ and beyond assess their risks and secure business insurance. Contact us today for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.