Property and Casualty Insurance for a Home-Based Business

Premiums start at about $200 a year for $10,000 of property coverage, and you can purchase as much as $1 million in additional liability coverage.

If your home-based business requires a separate property and casualty plan, consider purchasing an endorsement; it increases the coverage of your homeowner’s policy and starts at about $15 a year. This option may make sense if you have inexpensive business equipment, no liability exposures, do not store business inventory at home, and do not rely solely on your income for survival.

You should think about purchasing a business owner's policy (BOP) if you stock a lot of inventory, manufacture products, or are at high risk for professional liability. BOPs offer the most comprehensive coverage available; in addition to providing home-office coverage, BOPs offer extended liability and equipment coverage.

Discuss the different types of home-based business insurance with your insurance agent to determine which policies best meet your needs. And remember to review your insurance policy annually — as your business changes and grows, so will your insurance needs.