From consultants and online retailers to estheticians and tradespeople, home-based businesses are booming across Canada. But many entrepreneurs don’t realize that standard home insurance usually excludes business activities. One claim could put both your home and livelihood at risk.

Key Risks Home-Based Businesses Face

Operating from home can involve:

• Client injuries on your property
• Business equipment loss or damage
• Theft of inventory or tools
• Professional errors or service disputes
• Denied claims due to undisclosed business use

Even small side businesses can create big exposures.

Essential Insurance Coverages

• Home-Based Business Endorsement – Limited coverage added to a home policy
• Commercial General Liability (CGL) – Protects against third-party injury and damage
• Professional Liability (E&O) – For advice-based or service businesses
• Business Property Insurance – Covers equipment, stock, and tools
• Cyber Liability Insurance – For online sales and client data
• Commercial Auto Insurance – If vehicles are used for business

Undisclosed business activity can void coverage.

Risk Management Tips

• Disclose your business fully to your insurer
• Separate personal and business assets
• Limit client traffic and use written contracts
• Review zoning and municipal bylaws

Final Thought

Running a business from home is convenient—but insurance shortcuts can be costly. With the right Canadian coverage, home-based entrepreneurs can work confidently without risking their biggest asset. 🇨🇦

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.