I ere are some thoughts on home based business insurance.

Don’t Depend on Your Homeowners Insurance to Protect Your Business
Property insurance covers your stuff – desks, chairs, inventory, computers, etc. Liability coverage protects you against a lawsuit if someone is hurt either while visiting you or due to a defect in your product. In general, personal policies just don’t do the job for a business.

Many homeowner policies provide only $2,500 of business personal property coverage at your house and $250 away from your premises. Buildings not attached to your home (a separate garage) that are used in your business are also not covered by most homeowner insurance policies.

Make sure to carefully review your business insurance policy.

If you have just brought in $50,000 in inventory and have used your line of credit for the purchase, are you covered in case something happens to your business like a flood or fire?. How does your insurance policy cover changing inventory levels?

Many insurance companies don’t cover roof cave-ins due to snow, basement floods due to weather, sewer backups, etc. Make sure you actually read the fine print, and clarify what is actually covered or not. If it says that you are not covered by "acts of god" that generally means that basement floods due to rain, a fire because of lightning, etc., are NOT covered.