Do I Need Insurance for My Home-Based Business?

Apr 11, 2023

Running a home-based business can be a great way to save money on overhead costs, avoid commuting, and create an environment that inspires productivity. Whether you run a service business, offering online marketing or acting as a virtual assistant, or a customer-facing business, like a daycare or massage therapist, working from home can be a excellent choice while you’re getting started.

While your home insurance policy may offer great coverage for your property, unfortunately your home-based business may not be covered. Since businesses are treated differently than residences, any business-related property is excluded from your home insurance plan. Luckily, home-based business insurance offers proper protection for those working from home. Here are some things you need to know:

Why it’s important to keep your insurance company updated

Home-based business insurance policies are usually available as extensions of a home insurance policy. However, you must notify your current home insurance broker if you plan on operating your business from home. Working from home increases your liability, so your provider should be informed if and when you switch to a home-based business to ensure that you are properly covered.

If you don’t notify your provider, even if a loss has nothing to do with your business, your provider may deny a claim based on the fact that you have an undisclosed material change in risk. You may even be at risk of having your policy cancelled.

As your needs change and your business evolves, it’s always important to keep your insurance broker in the loop, so they can keep your insurance policy and your provider updated.

Situations Where You Need Home Business Insurance

Home-based businesses are great for a wide variety of professions. From online service companies to customer-facing hospitality businesses, working from home adds convenience and cuts costs.

Regardless of the nature of your business, it’s always a good idea to have home-based business insurance coverage to ensure you and your customers are protected. Home business insurance not only insures your company’s property, but also covers liability in the event of an accident or injury.

Here are a few common home-based businesses that benefit from home business insurance:


Home business insurance is always a good idea for people running a home daycare. Bumps, scrapes, and falls can be expected, but what if something more serious happens?

Home-based business insurance covers liability so that you are not at fault if a child is injured at your home daycare centre. Additionally, your property is protected, so you won’t have to worry about an overly-rambunctious child breaking something expensive by accident.


If you work from home as a contractor, your tools and equipment are likely are not covered by your home insurance. If your home gets broken into and your tools get stolen, your home policy will not cover the costs of replacing them.

Whether you’re a contractor with a garage full of tools or a consultant with an expensive computer, home business insurance has you covered.


Working from home as an aesthetician, massage therapist, or hair stylist can save a lot of money and time in the long run. Your home provides an inviting environment where your clients can relax as if they were in their own homes.

However, each of these professions require expensive equipment that can be hard to replace if they are stolen. Customers can also be injured, if equipment breaks. Home business insurance covers your tools and protects you from accidents, so you will not be paying out-of-pocket if something happens.

Home-based insurance is an affordable way to protect your business and assets. Whether you run a services company or construction contracting, protecting your property is paramount. At Oakville Insurance Brokers, we can help find a home-based business insurance policy that works for you. Call us at 905-845-0391 or contact us