The Coverage Gap in Your Living Room

You started a business from your spare bedroom, garage, or kitchen table. Maybe it is a consulting practice, an e-commerce operation, or freelance work. San Antonio’s entrepreneurial community is full of businesses that began exactly this way.

Here is what many home-based business owners do not realize: your homeowner’s insurance almost certainly excludes business activities. That laptop you use for client work? Those product samples in your garage? That client visiting your home office? Your personal insurance likely provides little or no protection.

What Homeowner’s Insurance Will Not Cover

Most homeowner’s policies exclude or severely limit business-related claims. Business equipment typically has limits of $2,500 or less. Liability coverage for business activities is usually excluded entirely.

If a client trips in your home office, your policy may deny the claim because it arose from business activity.

In-Home Business Endorsements

Some insurers offer endorsements that extend limited coverage to home-based activities. These work for very small operations with minimal client interaction.

But endorsements have limits. Property coverage remains modest. Liability coverage is basic. Professional and product liability are not included.

Business Owner’s Policy

As your home business grows, you will likely need a proper BOP. It bundles general liability, property coverage, and business income protection at reasonable costs for small operations.

When to Upgrade

Consider proper business insurance when: clients visit your home, you have more than $5,000 in equipment or inventory, you hire employees, your revenue exceeds hobby level, or contracts require proof of insurance.