Can home-based businesses typically be covered under standard homeowner's policies?

Home-based businesses are often not covered under standard homeowner's policies because these policies are designed primarily to cover personal property and liability associated with the homeowner's personal activities. When a business operates from home, it introduces risks and liabilities that typical homeowner's insurance does not accommodate. This includes potential risks related to business equipment, liability for clients visiting the home, and coverage for business income loss.

To ensure adequate protection, individuals running home-based businesses typically need to secure additional coverage through a business policy, such as a business owner's policy or a commercial general liability policy. This specialized coverage is tailored to address the unique risks associated with operating a business, providing a more comprehensive safety net than personal homeowner's insurance.

The nuances in the local insurance regulations and the specifics of the homeowner policy can vary, but in general, relying solely on a homeowner's policy for business needs can leave gaps in coverage. It’s essential for business owners to consult with an insurance agent to determine the right type of policy for their specific situation and ensure they are adequately protected.