Working From Home vs. Running a Business: What Your Insurance Really Covers

Most standard Homeowners insurance policies in Washington provide very limited protection for in-home businesses, but there’s an important distinction between working from home and running a business from home. If you’re simply performing your job remotely for an employer—using a laptop, phone, or basic office equipment—your Homeowners policy generally provides adequate protection, as this setup is considered incidental use and not a business exposure. However, if you operate a business out of your home—serving clients, storing inventory, or maintaining specialized equipment—your standard policy offers only minimal coverage (typically around $2,500 for business property) and no liability protection for business-related activities. In addition, any injuries or losses connected to business operations are typically excluded, which can create unexpected gaps in coverage if not addressed in advance. In these cases, adding a home business endorsement or securing a home-based business policy or Business Owners Policy (BOP) is recommended. These options extend property limits, provide liability coverage, and ensure your personal Homeowners policy remains focused on protecting your home and family.