The short answer
Only partly. Your homeowners policy may cover a little business property, but it usually stops short of what a working business needs. Review your policy or talk with your agent to see where your limits are.
The fix is often simple and affordable. Small businesses can sometimes close the gap with an add-on, while bigger operations may need a separate policy built for business risks.
Business property limits
Many policies cap business property kept at home at a low amount, often a few thousand dollars. That can be less than the value of one computer setup, camera kit or inventory shelf.
The limit for business property away from home is often even lower. If you take equipment to job sites, markets or client offices, check that number too.
The liability gap
This is often the bigger risk. If a client trips on your front steps on the way to an appointment, or a delivery driver for your business is hurt, your homeowners liability may exclude it because it came from business activity.
Professional mistakes are a separate issue. Errors in advice or work you do for clients are generally not covered by any homeowners policy.
Ways to fill the gaps
- Home business endorsement: adds limited business property and liability to your homeowners policy, often for small, low-traffic businesses
- In-home business policy: a separate policy with higher limits for property and liability
- Business owner's policy (BOP): bundles property and liability for growing businesses
- Professional liability: for errors in services or advice
- Commercial auto: if you use a vehicle mainly for business
Which may fit you
- Freelance work on a laptop with no visitors: an endorsement may be enough
- Clients come to your home: liability coverage becomes important
- You keep inventory: check property limits and whether stock is covered
- You have employees: you may need more, and rules vary by state
Tell your carrier
If a carrier learns about a business only after a claim, it may limit what it pays. Being open up front lets your agent match coverage to what you do.
Working remotely for an employer is different. Your employer's equipment is usually covered by your employer, but check before you assume.
