Top 5 Home-based Business Insurance Companies In The United States

Different Companies Offering Home-based Business Insurance Coverage in the United States

August 12, 20202156 views0

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Are you running a business from home? Do you know that your home-based business regardless of its operational base needs insurance coverage? This post will help you discover business insurance companies you can contact for the insurance needs of your home-based business.

Most businesses and start-ups began as home-based businesses and this is not a new thing considering the cost of having to get a property for your business or employing staff. It will favour your budget more if you stick to running your business from home.

If you have a business idea you have been grooming and deliberating on and you are skeptical about pursuing it due to the cost of securing a premise for your business operations, stop your skepticism and start your business from the comfort of your home.

Still skeptical?

Amazon and Apple who are now big corporations and giants in online shopping and electronic niches respectively all began as home businesses. They only grew to become industry giants much later.

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Starting your business at home is not a limitation whatsoever. One advantage is the cost-effectiveness it gives. Your home business keeps you from worrying about paying for rent and other bills which comes with having a property specially for your business.

But there is something you must worry about and that is insurance. Your business even though it is domiciled and operates from your home has to be covered by an insurance policy.

A business insurance policy typically protects you, your personal assets and business assets from lawsuits, fire outbreaks, natural disasters, property damage, product loss and other unexpected catastrophes.

This is necessary because even if you operated a home business, it is not exempted from such unfortunate events. Whether your business is operating on a large scale or on a small scale, the threats are not different.

Quite a handful of start-ups and small businesses especially those starting from home are often vulnerable to threats and in most cases when they get hit by unexpected events they are unable to survive and continue doing business.

So if you are already running your home business or about to start one, then consider getting business insurance. This will help you and protect your business from being adversely affected by peculiar business threats, challenges and risks.

Types of Business Insurance Policies For Your Home Business

The following are some business insurance policies you should acquire for your home business.

1. General Liability Insurance

This insurance policy covers and protects your home business from financial losses arising from defending lawsuits, copyright infringement, property damage, and bodily injury.

It is one insurance policy that has a provision for every kind of business regardless of the business size, nature, and scope of operation.

2. Product Liability Insurance

The product liability insurance may not apply to your home business if you don’t deal with products.

When your home business deals with the manufacturing, distribution, and retailing of a product, you will need an insurance cover to protect your business products from theft, loss or damage. It will help you cushion the effect of any of such events.

3. Business Owner’s Policy (BOP)

The Business Owner’s Policy (BOP) is an insurance cover which comprises all the required insurance policies every business should have. It combines the general coverage options for all businesses.

4. Business Interruption Insurance

A Business Interruption Insurance policy will cover the expenses your home business may incur when an event hinders you from continuing your business activities.

For instance, a fire outbreak or break-in can cause you to temporarily stop business operations for a certain period of time. This temporal stop may cost your business certain expenses which your Business Interruption Insurance policy will cover.

Having known the business insurance policies for your home business, these are some of the best business insurance companies that offer insurance covers for home-based businesses.

Top 5 Home Business Insurance Companies In The United States

1. State Farm

State Farm is one of the foremost insurance companies in the United States located in Bloomington, Illinois. State Farm is ranked 36th on the Fortune 500 list of largest companies based on revenues. State Farm is the #1 homeowner insurer in the US since 1964.

They offer auto insurance, life insurance, health, liability and disability insurance, small business insurance, home and property insurance policies.

For your home business, you can get both a small business insurance cover and a homeowners insurance cover. This will protect your home-based business from natural events such as lightning, snow or sleet, storm, e.t.c, and from events like a fire outbreak, vandalism, explosion, and riots on your home.

State Farm also offers Business Owner’s Policy typically covering for the general insurance needs of your business.

2. Nationwide Insurance

Nationwide Mutual Insurance company is a group of large US financial and insurance services companies with headquarters in Columbus, OH.

They offer insurance, retirement, and investment products that protect your home-based business by offering commercial, life, car, pet and homeowners insurance.

In the year 2017, Nationwide Insurance had a total asset of USD 230.6 billion and a net income of USD 520 million. They are a good option in acquiring general liability insurance for your business.

3. Liberty Mutual

Liberty Mutual Insurance is the third-largest property and casualty (P & C) insurance company in the United States. It is ranked 75th on the Fortune 100 list of largest corporations in the US and has its headquarters in Boston, Massachusetts.

Liberty Mutual is popular among business insurance companies located in the United States as they provide a variety of commercial coverages from property and casualty to specialty lines and employee benefits.

They would efficiently cover for any loss arising from property damages and casualties.

4. Hiscox

Just like Liberty Mutual Insurance, Hiscox insurance offers insurance policies for businesses with a particular interest in small businesses. The coverages by Hiscox include general liability insurance, Business Owner’s Policy (BOP), short-term liability insurance, cybersecurity insurance, and worker’s compensation.

When it comes to small businesses, Hiscox USA is the insurance company to trust. It was founded in 1901 and has since provided insurance solutions to small business owners in over 14 different countries as part of the Hiscox group.

Based in Chicago, Illinois, Hiscox Insurance has a presence in all the 50 states that make up the United States of America including the District of Columbia.

5. Travelers Insurance

The last but certainly not the least on our list of best business insurance blogs to get an insurance cover from for your home business is Travelers Companies Inc., commonly known as Travelers.

Travelers is a New York based insurance that is ranked 2nd on the list of largest underwriters of US commercial property casualty insurance. The insurance company raked in a revenue of USD 31.58 billion in 2019 alone.

This puts them ahead of Liberty Mutual as the preferred choice of a property and casualty insurance cover.

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