To discuss your Home Based Business Insurance today, call 905-886-5630 or toll free at 1-800-567-1279, or fill out the online quote form.



The face of business has changed. Economic forces, technological developments, and a new more independent breed of business person have contributed to the dramatic rise in the number of home-based business.

From an insurance perspective, it's important for budding entrepreneurs to realize that their business is not covered or has very limited coverage under their habitational policy.

To make business insurance more affordable for people who operate a business out of their principal residence, many insurers now offer coverage as an extension to the homeowner's, condominium or tenant's package policy. Since the premiums payable under these programs are lower than those for stand-alone commercial policies, there are strict eligibility criteria:

• the business must be operated by the insured or a member of his or her immediate family residing in the dwelling.

• gross annual sales cannot exceed $50,000 (some insurers have set a limit of $200,000).

• the business activity itself must be acceptable to the insurer (traditional office-related business, sales representatives and hobbies and crafts are generally accepted, but automotive repair, woodworking shops and business involved in selling products outside Canada are usually not).

• only one business can be run out of the home.

• there must be no claims arising out of the business operation for the last three to five years.

Home-based business insurance programs offer the same protection for business property as your residential policy does for your personal properly. Protection against fire, lightning, explosion, vandalism, water damage and theft are included if they are already part of the residence policy. (If you don't already have sewer back-up coverage, be sure to add it.)

The personal liability coverage homeowner's, tenant's or condominium policy is extended to include liabilities arising from the home business operations. Please note, the limit of liability is the same as that on the residence policy but, can be increased to $2,000,000. Professional liability coverage (such as errors and omissions), is not included.

Business contents coverage under an extension can include such items as computers, software and fax machines. The limit of protection ranges from $10,000 to $50,000. Special coverage can also include property at a temporary location or in transit (Canada only), accounts receivable, valuable papers, extra expenses, loss of business income actually sustained, and loss of money and securities inside and outside the residence. If you have replacement cost indemnity on your residence policy it will also apply to your business contents. Remember, not only is home-based business insurance affordable, its premium is a tax deductible business expense.

Alternative and Renewable Energy Installations. Many insurers once they become aware of an installation in your home often will no longer insure your premises as they have concerns about battery safety, windstorm damage, failure of alternative heating etc. Not to worry we are able to insure your home. Just give us a call.