Skip to content

Home Based Business Insurance

Specifically designed with hustling, fearless entrepreneurs in mind, 2autoinsurance’s home-based business insurance covers the most common risks that you may come across when operating out of your home.

Join over 150,000 businesses that have trusted us!

Save up to 35% on your insurance

Just a few minutes to get your best quote

airbnb insurance policy


Insurance for home-based businesses

Running your business from home has many advantages: flexible working hours, lower overhead costs, and the opportunity to swap a long commute for a better work/life balance.

However, when it comes to insuring your business, most home-based business owners make the mistake of assuming their home insurance covers their business activities. The reality is, most homeowner’s policies exclude business-related claims. In some cases, your policy could even be void if your provider is unaware that you are conducting business from home.

At 2autoinsurance, we know what makes your business unique. With over fifty partners, we’ve helped more than 50,000 entrepreneurs protect their businesses with insurance policies customized to cover industry-specific risks.

Our mission is to make insurance as accessible as possible. We wrote this guide to help you navigate the basics of liability insurance for your home-based business.


What is home based business insurance?

Your homeowner policy is unlikely to provide coverage for any loss or damages resulting from business-related activities, leaving your business exposed to a significant amount of risk.

Specifically designed with entrepreneurs in mind, our home business insurance policy package protects against risks associated with operating a business out of your home, such as negligence or third-party injuries, across industries.

airbnb host guarantee

What does it cover?

Various businesses have various risks; for example, a financial advisor won’t require the same type of coverage as an e-commerce business.

2autoinsurance procedure for your home-based corporation should cover the threat you are most likely to face. Those risks will vary by service, industry, and product; however, the following core ranges apply to most business proprietors: 

  • Professional Liability Insurance, also known as Mistakes and Omissions Insurance, guards against claims alleging carelessness, misconduct, or failure to deliver usefulness as promised. Professional Liability Insurance is essential for any business owner presenting advice or assistance for a fee. It may provide legal expense coverage in case of financial loss due to your delinquency. Professional Liability Insurance is required for some careers(e.g., accountants, paralegals). All of our procedures are association-approved.
  • Cyber Liability Insurance: 

          According to a statement published by the FBI, cybercrime has grown by 400% since the onset of COVID-19, with small businesses increasingly targeted. It is a critical component of your risk management strategy, primarily if you use web conferencing tools (e.g., Zoom, Google Meet), scheduling software, or store personal client information. Cyber Liability Insurance could cover costs associated with cybercrime involving your technology systems and customer data.  Cyber Liability Insurance furnishes coverage for notification costs, legal expenditures, and risk leadership fees if your data is compromised due to a cyber seizure (e.g., phishing, hacking).

  • Commercial General Liability Insurance, also known as ‘slip-and-fall’ insurance, shields against claims alleging third-party parcel damage or bodily damages. It may seem extreme coverage, considering you conduct business from home. However, consider the delivery person who causes property damage at a customer’s home or the client who slips on your steps while visiting. 2autoinsurance may provide financial coverage for medical and legal fees if you or your business are in a lawsuit.
  • Product Liability Insurance: 

           Often included in 2autoinsurance policies, Product Liability Insurance delivers coverage for property damage or bodily harm due to a product you sell, manufacture, or distribute. For example, you operate a micro-bakery from your home kitchen, and a customer sees you claiming a cake you sold them induced food poisoning. Product Liability Insurance generally covers damages forced by creation, manufacturing, and marketing flaws. If you plan to sell your products online or ship outside of Canada, check with your broker to see which areas are covered by your policy, as additional coverage may be necessary.

  • Commercial Property Insurance:

               Much 2autoinsurance, it may not happen for business owners operating from home that they need Commercial Property range(home business contents insurance). Later all, isn’t that why you have home insurance? Most home insurance policies don’t cover impairment, loss, or casualties due to business-related actions. For example, if your laptop is robbed, it may not be covered as home insurance generally excludes business property. Commercial Property Insurance doesn’t just save physical location; it protects your business’s most critical physical assets, including supplies, technology, goods, and commodities. Most home insurance policies don’t cover business-related claims, making Commercial Property Insurance essential for your home and business.

Please note that you must inform your insurance provider if you have diverted to working from home. If your house burns down and you didn’t warn your insurance agent that you were using your home for business purposes, you may find your home coverage void.

  • Equipment Breakdown Insurance:

Equipment Breakdown Insurance covers the cost of repairing or replacing equipment damaged due to an electrical or mechanical breakdown from computers to industrial-grade machines. Not to be baffled with Commercial Property Insurance, which covers loss or injury due to an insured occasion(e.g., fire, theft).

How much does it cost?

On average, a small business owner operating in Ontario can anticipate premiums starting at $450 annually for liability insurance with a $2M limit.

Insurance companies consider several factors when determining your premium, including:

  • Annual and Projected Revenue
  • Industry and Profession
  • Services and Products Offered
  • Training and Years of Experience
  • Claims History

We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.

it contractor insurance
Home Business Insurance
COVID-19 considerations

With mandatory stay-at-home orders and social distancing requirements, it is no surprise that entrepreneurship rates increased over the past year. However, for those who transitioned to a home-based business due to COVID-19, it is highly recommended that you alert your broker and review your existing insurance policies to ensure they cover your current work environment. As mentioned, not updating your broker could negatively impact your business. Should you or your company be named in a claim or lawsuit related, your homeowner’s policy will most likely not provide coverage.

A note for business property owners (renting or leasing), most business insurance policies limit coverage for premises left vacant or unoccupied for more than 30 days. If you have had to close your location due to COVID-19, your broker can help you determine what actions to take to ensure you have coverage.

Frequently asked questions
General liability insurance is a specific insurance policy that covers injury and damage to third-parties, while home-based business insurance is an umbrella term that may include several different insurance policies such as general liability, professional liability, legal expense, contents coverage, etc, bundled into a package specially curated for businesses that operate out of the owner’s home.
Coverage requirements may differ for different industries. The most basic insurance policy that is applicable to almost all businesses is commercial general liability, which provides protection from third-party related risks. If you provide a service or advice, consider adding professional liability insurance to your policy. If you own expensive equipment and assets, consider contents coverage and equipment breakdown coverage. Legal expenses coverage may also come in handy if you require legal counsel or defense.
Most homeowner’s policies do not cover any damages to your home that result from business-related activity and property, but go over your policy to ensure that it’s the case for you. For example, if you run a catering business and one of your equipment caused a fire to start at your property, any resulting damages may not be covered by your home insurance policy.
Our most recent reviews

See for yourself what customers have to say about us.


"Thanks so much for my insurance"
Aysia Maldonado
Google Review
Service was fast and simple everyone was nice and I got a low price for insurance a month been with them for sometime now.
Jay M.
Yelp Review
"It always gives me a bit of hope when a company actually goes above and beyond the call of duty and provides excellent customer support. The agent are the best!!!"
Amparo J.
Yelp Review
"It was nice, really clean and provided free candy on hollween too .."
Juan Ortiz.
Google Review
"Great service fast and friendly."
Miguel Garcia
Google Review
"Jasmin answered my questions friendly over the phone and William, helped me personally fast, friendly and with patience."
Lolys M.
Google Review
"Auto solutions insurance is an amazing insurance office the girls in pomona are very helpful any question or concern i might have they always go above to get me the answers. Definitley recommended for all your insurance needs."
Salma L.
Yelp Review
Ready to start? Let’s get a quote!

Running a business from home has a unique set of risks; you deserve a broker dedicated to providing you with the best coverage.

Mistakes can happen and disrupt your business in a matter of minutes. We know what makes your business unique; leave it to us to find the best fit for you.

Home Improvement
Call Now Button