What Insurance is Needed for Home-based Businesses and “Side Hustles”

Feb 21, 2024
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More and more Canadians are turning to home-based businesses and so-called “side hustles” for some extra income. Some examples of these home-based operations include: starting an ecommerce store, opening a hair salon at home, or consulting from a home office. While the extra income is great, some entrepreneurs may not be aware of the impact on their home insurance.

Canadian Underwriter shared that 28% of surveyed Canadians have started a side hustle job in 2023 – up 13% from 2022. Nearly half of those respondents said they are not declaring the extra earned income to the CRA. As a result, it’s suspected that certain business owners may also be missing a critical component of running that business: Insurance.

An insurance myth is that a standard home insurance policy will cover a small business that is run from home. In fact, it’s the opposite – and if not disclosed to your insurance company, it could cause a serious issue when it comes time to make a claim. There are some cases where the insurer will void the policy altogether in the case of an undeclared home-based business, making it difficult for that person to even find insurance again.

What Insurance is needed to run a Business from Home?

1. Business Property Insurance

This type of insurance covers assets in your business, such as: equipment, inventory, and furnishings. It protects against losses due to theft, fire, or other covered perils. If your home-run business involves valuable equipment or inventory, having business property insurance is important to protect your assets.

2. General Liability Insurance

General liability insurance protects your business against claims of bodily injury or property damage caused by your products, services, or operations. Even home-based businesses have liability risks, such as a client slipping and falling during a meeting at your home office. Having general liability insurance can protect against claims and legal expenses.

3. Professional Liability Insurance

Also known as errors and omissions insurance, professional liability insurance is crucial for service-based businesses. It offers protection against claims of negligence, errors, or omissions in the services you provide. If your side hustle involves consulting, freelance work, or any professional service, professional liability insurance can protect you from potential lawsuits.

Next Step? Speak with an Insurance Broker

Each home-run business has its own unique characteristics and requirements for insurance. A Staebler Insurance Broker has the experience and expertise to guide and advise you on what suitable in your situation. Reach out today with questions and be one step closer to being properly insured.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business, and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region and southern Ontario. Get a Quote to get started today.

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