Insurance for Home-Based Businesses: What Arizona Entrepreneurs Need to Know

Arizona is home to thousands of small business owners and freelancers who work from home — from graphic designers and accountants to bakers, online retailers, and consultants. But there’s one thing many entrepreneurs overlook: their homeowners insurance doesn’t automatically protect their business.

​Whether you’re shipping products from your garage or meeting clients in your home office, it’s time to make sure your coverage fits the business you’ve built.

1. Your Homeowners Policy Has Business Gaps

Most homeowners insurance policies limit or exclude business-related losses.
Common limits include:
• Business property coverage: Usually capped at $2,500 for equipment.
• Liability coverage: Personal liability doesn’t cover client injuries or lawsuits.
• Loss of income: No protection if a covered claim (like a fire) forces your business to pause.

2. When You Need a Business Endorsement

A home-based business endorsement can fill those gaps. It adds coverage for:
• Business equipment and supplies
• Off-site business property (like items in your car for deliveries or events)
• Limited business liability if clients visit your home

If your business grows beyond a few clients, though, a full business owner’s policy (BOP) is the smarter move.

3. What About Online or Product-Based Businesses?

E-commerce and handmade product sellers face additional risks — especially around inventory, shipping, and liability.
• Inventory: Not covered under standard homeowners insurance if stored at home.
• Product liability: If an item you sell causes harm, you could face a lawsuit.
• Cyber risks: Selling online or collecting customer data requires cyber liability protection.

4. Arizona’s Small Business Reality

With more remote workers and home-based startups than ever, insurers are seeing rising claims for equipment damage, theft, and product-related incidents. Many can be avoided with simple policy updates.

Bottom Line:
Your business deserves the same protection as your home. If you’re running a business from home, talk to your insurance agent about the right coverage to safeguard your hard work — and your peace of mind.