In Tennessee, there are 603,310 small businesses currently in existence. When you own an operation that works out of your home, there are specific coverages necessary. Tennessee homeowners insurance will have an option for home business protection.

A Tennessee independent insurance agent can help you find an affordable policy. They have a network of multiple carriers so that you have the best coverage available. Connect with a local expert to get started in minutes.

What Is Home-Based Business Insurance? 

Home insurance in Tennessee can have coverage for your home-based business, depending on the carrier. Sometimes you will need to obtain separate commercial insurance as well. The following protection could be utilized for your home business:

• Liability insurance: Pays for lawsuits for bodily injury, property damage, or slander. 
• Equipment breakdown insurance: Pays for the replacement or repair of business equipment due to a power surge, outage, and more.
• Business property insurance: Pays to replace or repair any business property damaged by a covered peril. 
• Professional liability: Pays for legal fees when you're sued due to possible faulty professional services offered.

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There are many benefits to working out of your home. When it comes to operating a business out of your residence, you'll want to understand how you're covered.

What Does Home Business Insurance Cover in Tennessee?

If you run a business out of your home, you can obtain insurance coverage in a couple of different ways. Every policy will be unique and have specific requirements. Check out some options below for your Tennessee business:

• Homeowners policy coverage: If you simply do desk work from your home office and don't have any business property or any other risk exposures, then you may be able to extend coverage from your homeowners policy. This coverage will only give you your current liability limit, and that's pretty much it. 
• Separate business policy coverage: If you have a more robust business with equipment, inventory, business property, and more, you'll need separate business insurance. These policies may need to come from the same carrier as your home insurance, depending on their guidelines. The policies can include general liability, commercial auto, business property, equipment breakdown, professional liability, and more. 

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What Doesn't Home Business Insurance Cover in Tennessee?

All Tennessee commercial insurance policies will come with exclusions. Your homeowners insurance will only cover a certain amount of business operations under your personal insurance. Typical policies will not include the following coverages without adding them individually:

• Inventory: If you have business inventory, your policy will not provide coverage for its replacement or repair. You will need a business property policy that endorses this protection.
• Business equipment breakdown: Equipment breakdown due to a power outage or more will not be covered under your home or standard business policies without manually adding it beforehand.
• Customers on premises: If you have customers showing up at your house to pick up items or come inside for business purposes, your policy could exclude this. Most homeowners policies will prohibit this risk. Some business policies may pick up this exposure depending on what's involved. 
• Commercial auto: If you use your vehicle to run your business, you may need a commercial auto policy. This is separate insurance that will need to be quoted and is not automatically included.
• Professional liability: If you offer professional services like accounting, you'll need to have your own professional liability coverage for any poor advice or negligence that could occur. Your standard business insurance policies will not provide coverage for this type of lawsuit. 

Do Home-Based Businesses Need Insurance in Tennessee?

In Tennessee, $6,317,565,000 in commercial insurance claims were paid in 2019. Every operation, big or small, will need business insurance. If you work out of your home, there could be more at risk.

In addition to your company having a loss, your personal assets and liability exposure could take a hit as well. Multiple claims could occur and wreak havoc on your business and your home. To ensure you're fully protected, review your coverage for accuracy.

How Much Does Home-Based Business Insurance Cost in Tennessee?

On average, your Tennessee homeowners insurance will cost $1,196 annually. If you're insuring your operations under your home policy, you'll need to add a business endorsement. Each carrier will have its own flavor of business offerings, and pricing usually is anywhere from $200 to $1,000 annually for this coverage.

In the event that your homeowners policy will not allow business protection, you will have to obtain separate insurance. Commercial insurance comes in many forms and should be discussed with a licensed adviser. 

How to Connect with a Tennessee Independent Agent

Your Tennessee homeowners insurance policy can come with several types of coverage. Protection for your at-home business is crucial when you want to avoid financial ruin. Fortunately, you'll have options on both your home and commercial policies.

A Tennessee independent insurance agent can find coverage at an affordable price. Since they work with numerous carriers, you'll get the best options while your agent does the work. Connect with a local expert on TrustedChoice to begin.