Do I Need to Insure My Home-Based Business?

Do I Need to Insure My Home-Based Business?

Do you know what one of the most common mistakes is that home-based business owners make? They assume that their homeowner’s or renter’s insurance policy will cover their home-based business. This small oversight has cost many small business owners across Canada hundreds of thousands of dollars in losses. Some have even lost their business altogether. If you own a home-based business, make sure you get the proper commercial insurance to protect you from the risks that you could face when working at home. What could impact your home-based business?

Errors and Ommissions

If you make a mistake and a client suffers a loss because of that error, they could sue you. If you don’t have E&O insurance, you could be held responsible for covering those losses out of pocket.

Fire and Water

Fires and floods can damage not only your home-based office but also your inventory, server, and equipment. And if you think your homeowner’s insurance is going to cover those losses – think again. Most home insurance policies won’t cover work-related equipment, especially any specialized ones.


Home break-ins happen every 90 seconds in Canada. To protect all of your valuable assets, you need more than just a good security system. You also need a solid insurance policy that will protect you if your expensive business equipment gets stolen during a break-in.


If one of your clients gets injured when visiting your property, or if one of the products you make or sell causes bodily injury or damage, you could face a serious lawsuit. Work-related injuries are not often covered by renter’s or homeowner’s insurance.


Another risk you need to have coverage for is cyberattacks. If your system is breached and information is stolen, corrupted or ransomed, you need coverage to protect you and support your business from serious consequences.

Business Interruption

If a sudden disaster impacts your home, your business might need to temporarily close or move. Without business interruption insurance, you may have to pay for a secondary office space and new equipment to get back on your feet.

When you run a home-based business, you need coverage to protect you from all the risks that your operations could face. Business insurance will help cover the costs associated with property damage and liability claims so you don’t have to pay for costly losses out of pocket. Contact us at MLS Insurance and we’ll make sure you have the right policies in place to protect you and your business from any potential risks that you could face now and in the future.

More articles...

Busting out the Oldsmobile? Get Antique Vehicle Insurance First
Moving to Canada? The Ultimate Home Insurance Buying Guide
All About RV Insurance in Alexandria, Ontario, Canada