Working from home - whether for yourself or your company - has many benefits. But there is one significant disadvantage that many are not aware of. If you have a standard homeowners policy, you are most likely not covered for any losses that are connected to your work. The computer, phone system, desk and chair that your employer furnished you with? Not covered. The ones that you furnished for yourself? Not covered. Here are some other exposures that you may have that are not going to be covered:
In case someone gets hurt on your property.
In case your business property is damaged by a covered event such as fire or flood, or lost due to theft.
In case you have to close your business for a while due to a loss such as fire or flood.
In case your business is sued for something you did wrong.
Basically, insurance is there to protect you from financial losses if something goes wrong with your home-based business. It's an important investment that can help you stay afloat if something unexpected happens. When you work from home, your premium is usually lower because your risk is lower, but without a commercial policy (or an endorsement on your homeowners policy), there won't be coverage for your business in the event of a loss.
If you're not sure what type of insurance you need, it's a good idea to talk to an insurance agent. They can help you assess your risks and recommend the right policies for your business.