The number of home-based businesses has surged, fueled by technology advancements and shifts toward remote work. According to recent statistics, nearly half of small businesses operating in the United States today are home-based. To put this in perspective, that’s roughly 15 million home-based businesses in total. From freelancers to e-commerce companies, the numbers are staggering. What’s even more surprising is that a huge number of these businesses are lacking the type of small business insurance coverage that they need — not because they don’t want it, but because they don’t know about it and it’s hard for them to find.
Insurance coverage tailored specifically for home-based startups is essential to safeguard their success. Many of these business owners rely on standard homeowner policies, but these policies often fall short in protecting the diverse needs of growing businesses. That’s where Cochrane & Company steps in, helping brokers craft customized insurance solutions to ensure comprehensive coverage for every home-based business client.
Understanding the Small Business Insurance Needs of Home-Based Startups
Home-based businesses span a wide range of industries— from freelance consulting to e-commerce stores and professional services. Despite their varying fields, these businesses share common risks, such as property damage, liability issues, and business interruption. For example, a freelance graphic designer might face a client lawsuit over intellectual property, while an online retailer could experience costly inventory damage due to fire or flooding.
While homeowners’ insurance may seem like a safety net, these policies are generally not designed to cover risks related to business activities. In fact, claims related to business operations may be excluded entirely, leaving business owners exposed to potential financial loss.
As businesses scale, adding more products or hiring employees, the risks become even more complex. Brokers who have access to the right knowledge and product solutions can better educate their clients and solve coverage challenges, positioning themselves as trusted advisors as their clients’ businesses grow.
Key Insurance Options for Home-Based Startups
There are several key insurance options available to help home-based businesses safeguard against a wide range of risks. One of the simplest options is a business endorsement, which adds limited business coverage to a standard homeowners policy. This option works for businesses with minimal risk, such as freelance writers or consultants, but it may not be sufficient for e-commerce businesses or those with physical inventory.
A more comprehensive choice is a business owner’s policy (BOP). A BOP bundles essential property and casualty insurance products — such as general liability, property insurance, and business interruption — into a single, streamlined package.
This option is ideal for small businesses that require both liability protection and coverage for physical assets. Additionally, businesses that rely on vehicles for deliveries or client visits should consider commercial auto insurance to cover any accidents or damages incurred during business activities.
The Role of Property and Casualty Insurance for Home-Based Startups
Property and casualty (P&C) insurance plays a critical role in protecting both the physical assets and financial interests of home-based businesses. For example, a photographer who stores expensive camera equipment at home would need P&C insurance to cover potential damage or theft of their gear.
Beyond equipment, P&C insurance also addresses broader liability concerns. A customer visiting the home office of a consultant could slip and fall, leading to a costly lawsuit. Without proper business liability insurance, the business owner could be left financially exposed. This is where Cochrane & Company’s expertise in property and casualty insurance products can make a real difference, offering brokers the tools they need to safeguard their clients’ livelihoods.
Tailoring Insurance Solutions for Niche and Hard-To-Place Risks
Not all home-based businesses are alike. Some operate in niche markets or present unique risks that can be hard to cover with standard insurance policies. For example, a business creating handmade skincare products from home faces specific product liability risks that a freelance web designer does not.
With such wide variations in business types and models, personalized insurance solutions are key to ensuring comprehensive coverage. Brokers have a unique opportunity to serve a diverse clientele, provided they have the right products to meet their clients’ needs.
As an experienced business and personal lines MGA, Cochrane & Company specializes in working with brokers to design policies that address these unique needs. By offering access to markets that cater to hard-to-place risks, we help brokers provide more tailored solutions, ensuring their clients are covered no matter how specific their business operations might be.
How Brokers Can Partner With Cochrane & Company
Through your appointment with us, we provide you with the tools and expertise you need as a broker to create custom insurance packages for home-based startups.
From cutting-edge technology solutions to specialized knowledge in the excess and surplus market, you’ll gain access to a wide range of property and casualty insurance products that address both common and high-risk scenarios. Whether your clients need simple coverage or have more complex needs, our tailored solutions ensure they’re fully protected.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients.
Get appointed with Cochrane & Company today by calling (855) 967-0069 and start offering your clients the best in small-business insurance solutions, backed by our expertise and commitment to success.
