Do you work from home full time or part time? Chances are your homeowners insurance won’t cover your home business, or at least not to the extent that you need it to. For one thing, insuring just the physical assets of your business (computer, home office furniture, fax machine, etc.) doesn’t cover every aspect of your business.

To find out how much and what kind of coverage you need, consider possible accidents; Hopefully, nothing unexpected will happen in your business or home, but you need to plan for it so that you don’t suffer financially if something happens.

If a fire destroyed your home and office, consider where you would work until your home is rebuilt. You probably need to rent temporary office space somewhere. Does your current insurance policy cover this?

Do you retain any customer information, either on your computer or in files? If your computer was ravaged by a virus, or your files damaged in a fire, and you didn’t have copies of all that information, your customers could hold you liable for the loss.

If you have clients visiting you at your home office, your homeowner’s insurance may not cover their medical expenses in case they trip and fall down the stairs or something similar.

Do you have employees? Even part-time employees can affect the type of business insurance you need.

As you can see, there are a number of factors that you need to consider when insuring your home business. Talking to your current homeowner’s insurance agent can likely help get you started in the right direction. You may not even need separate commercial home insurance. Depending on your business, you may be able to receive coverage simply by upgrading your current homeowners insurance policy.

Tip: If you combine your policies (ie auto, homeowners, business), you may qualify for a discount.
As more and more people look for home-based businesses, insurance companies are beginning to offer more comprehensive coverage at better rates. Be sure to talk to multiple insurance agents to find out who has the best rates, the most options, and the best coverage.