From consultants and designers to online retailers and tradespeople, home-based businesses are booming across Canada. But many entrepreneurs don’t realize that standard home insurance often excludes business activities—creating costly gaps.

Why Home Insurance Isn’t Enough

Most personal home policies:

• Limit or exclude business equipment
• Don’t cover client injuries on your property
• Exclude business-related liability claims
• Restrict coverage for inventory or tools

One accident or loss can put both your home and business at risk.

Essential Insurance Coverages

• Home-Based Business Endorsement – Extends limited coverage for small operations
• Commercial General Liability (CGL) – Covers third-party injury or property damage
• Business Property Coverage – Protects equipment, inventory, and tools
• Professional Liability – For advice-based services (errors & omissions)
• Cyber Insurance – Critical for online sales and data protection

Risk Management Tips

• Disclose all business activities to your insurer
• Separate personal and business assets
• Install security and fire protection
• Keep records and receipts for equipment

Final Thought

Working from home doesn’t mean working without risk. With the right insurance, Canadian entrepreneurs can protect their home, their business, and their future. 🇨🇦

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.