Are home-based businesses typically covered under a Dwelling Policy?

Home-based businesses are generally not covered under a Dwelling Policy, which is primarily designed to insure residential properties against risks like fire, theft, and liability for personal activities rather than commercial operations. Since Dwelling Policies do not account for the unique risks and liabilities associated with business activities, homeowners need to secure separate business coverage to adequately protect their commercial interests.

This separation is particularly important because standard homeowners insurance may limit or exclude coverage for business equipment, inventory, or liability arising from business activities, making it essential for anyone operating a business from their home to look for additional coverage, such as a Business Owners Policy (BOP) or a commercial insurance policy. This ensures that both personal and business assets are appropriately insured and that the policyholder is compliant with any legal and financial requirements surrounding business operations.