Are home businesses covered under condo insurance?

Standard condo policies provide limited coverage for home businesses. Additional coverage may be needed for business equipment and liability.

When you live in a condo and decide to run a business out of your home, your standard condo insurance may not be enough to cover all aspects of your business activities. Typically, condo insurance is designed to protect the personal property you own and the interior of your condo unit, but these policies generally offer limited support for home-based businesses. This means that while some of your home office equipment, like a computer or desk, might be covered up to a certain amount, this coverage is often insufficient for more extensive business needs or specialized equipment. Moreover, standard policies usually do not cover business-related liability issues, such as someone being injured on your property while conducting business. If you run a business that involves inventory, client visits, or specialized equipment, you might need additional policies or endorsements to ensure you’re fully protected against risks associated with your business.

Let's say Sarah is a graphic designer who decided to set up her business at her condo. She has a high-end computer, specialized software, and a fancy printer—all essential for her work. Her standard condo insurance covers her personal belongings up to a certain limit, but when she looks closely, she realizes her computer equipment is worth much more than the limit. Additionally, her policy doesn't cover any potential liabilities if a client, who visits for contract discussions, slips and falls. That’s a gap in coverage that could be risky for Sarah’s business. To address this, Sarah decides to speak with her insurance agent and ends up purchasing additional coverage, ensuring her business assets are secure and that she's protected from liability claims.

If you're running a business from your condo, it might be wise to review your current insurance policy and determine the scope of coverage for your business activities. Speak with your insurance provider about possible policy add-ons or separate business insurance policies that specifically protect business equipment, inventory, or any liability related to your business operations. Taking these steps ensures that the investment in your home business is well protected, giving you peace of mind as you focus on growth.