How Personal Homeowners Policies Often Fall Short When a Home Also Functions as a Business 

Running a business from your home in Morrow, GA can be convenient and cost-effective, but it can also expose you to risks your personal homeowners policy may not fully address. While homeowners insurance is designed to protect your residence and belongings financially, it often has limitations for business-related activities.

Limited Coverage for Business Property

Most standard homeowners policies place a dollar limit on business equipment kept in the home. This may not be enough if you have computers, specialized tools or inventory. If a covered event like fire or theft occurs, you could be responsible for replacing the rest out of pocket.

Liability Gaps for Business Activities

Homeowners insurance typically includes personal liability coverage, which is usually intended for nonbusiness incidents. If a client trips on your doorstep, a product you sell causes harm or you are accused of professional negligence, your personal policy may not respond. These types of claims often require separate business liability or professional liability insurance.

Exclusions for Offsite Incidents

If you transport inventory, tools or equipment for work, your homeowners policy generally won’t cover losses that occur away from your property. This can be a concern for business owners who deliver goods, attend trade shows or work at client locations.

The Right Coverage for Home-based Businesses

Depending on your operation’s size and type, you might need one or more of the following:

• Home-based business endorsements may add limited business coverage to your homeowners policy.

• In-home business policies may provide broader coverage for property and liability.

• Commercial insurance may be necessary for larger or higher-risk businesses.

Why Review Your Coverage Now

If your home doubles as your workplace, it’s important to make sure your protection is aligned with your actual risks. The team at First Priority Insurance Agency can help evaluate your current policy, identify gaps and recommend coverage options tailored to your business activities. Contact us today to learn more.

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.