Running a business from home offers convenience, flexibility, and lower overhead. But does homeowners insurance cover a home-based business in Michigan?
The answer is sometimes, but coverage is often limited. Whether you’re a freelance photographer, online retailer, consultant, or small business owner, your personal homeowners policy may leave important business risks uninsured.
Business Equipment May Have Limited Coverage
Your homeowners insurance may cover some business equipment, but typically with lower limits than personal belongings.
Computers, cameras, printers, and other equipment used for business purposes can quickly exceed those limits. If a fire or theft damages your workspace, your policy might not cover the full replacement cost.
The National Association of Insurance Commissioners (NAIC) notes that many homeowners policies limit coverage for business equipment to approximately $2,500.
What About Business Inventory?
If you operate an online store or keep products at home, don’t assume your inventory is protected.
Standard homeowners policies may exclude business inventory or provide very limited coverage. Products awaiting shipment, raw materials, and merchandise stored in your garage could require separate business property insurance.
Are Customers Visiting Your Home Covered?
Customer visits introduce additional liability risks.
Suppose a client slips on your walkway while arriving for an appointment. Your homeowners liability coverage may exclude injuries connected to business activities.
Businesses regularly welcoming customers, students, or delivery personnel should review their liability protection carefully.
What Insurance Does a Home-Based Business Need?
Depending on your operations, several options may help close coverage gaps:
- Home business endorsement: Adds certain business protections to an existing homeowners policy.
- In-home business policy: May provide broader equipment, inventory, and liability coverage.
- Business Owners Policy (BOP): Typically combines business property and liability coverage, often including business interruption protection.
The right option depends on your business activities, property values, and customer interactions.
Protect Your Home-Based Business With E&Y Insurance
At E&Y Insurance Agency, LLC, we help Michigan business owners review their existing coverage and explore insurance options suited to their operations.
Whether you’re working from a spare bedroom or operating a growing business from your garage, understanding your coverage matters.
Call E&Y Insurance at (248) 362-1313 to discuss your home-based business insurance needs.
