Home-Based Business Insurance in Canada
Home policies may offer limited business protection but generally do not replace the commercial liability or professional coverage a business may need.
Running a business from home does not necessarily mean there is no insurance, but a personal home policy should not be assumed to cover the business in the same way it covers ordinary household activity. Insurance Bureau of Canada advises home-based business operators to tell their home insurer about the business. It also notes that homeowners policies commonly provide only a small limit for business books, tools and instruments in the home, while personal liability typically does not respond to the same risks as commercial liability coverage. The useful question is therefore not whether a home business “voids” a home policy automatically. It is which business risks the personal policy actually covers, which it limits or excludes, and what separate protection is needed.
Opening this article…