Is Your Manitoba Home-Based Business Insured?

blonde woman in a ponytail, black glasses and a denim shirt on the phone while looking at a brown bag in her hand in her home office.
January 13, 2021

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Working from home definitely has its perks. No commute, no packed lunches, and who doesn’t love being their own boss! But, it’s not all comfy clothes and flexible hours. Especially if you’re lacking proper insurance, running a home-based business brings some risks with it, too.

If you run a home-based business in Manitoba, there are a few different business insurance options available to you. We’ve outlined all of your choices below, giving you an in-depth look at each one, so that you can make an informed decision.

How Home-Based Business Insurance Works in Manitoba

In Manitoba, like in most other places, standard home insurance covers your home— not your home-based business. That means that if something unexpected like a windstorm or water wreckage affected your home, your personal belongings would be covered by insurance, but anything business-related would not.

A standard home insurance policy may offer a small amount of coverage for certain smaller business-related items, but chances are that it wouldn’t be enough. Depending on the type of business you run, that could mean leaving a lot of expensive equipment, tools, stock, and other assets uninsured.

By extending your regular home insurance to cover both your personal and professional belongings, home-based business insurance gives you the peace of mind of knowing that if something unexpected happens on your property, both your home and your business will be protected.

What Home-Based Insurance Covers

Home-based businesses can be anything from small side-hustles to full-blown productions. So in order to meet the needs of all the businesses it protects, home-based business insurance can include a wide range of things, like:

  • Equipment
  • Tools
  • Extra liability for businesses like home-based daycares
  • Company-related errors and omissions
  • Damaged or stolen inventory
  • Customer-facing property damage
  • …and so much more

But, don’t let that overwhelm you! If you’re looking to purchase home-based business insurance, we recommend that at the minimum, you opt for:

  • Extra liability;
  • Business interruption insurance; and
  • Business property insurance.

These are things that aren’t covered by your regular home insurance and that, if something unexpected happened, could end up costing you a lot of money.

Home-Based Insurance Options in Manitoba

If you run a home-based business in Manitoba, there are a few different business insurance options available to you. You can choose to extend your personal liability and home property insurance, or you can opt for complete home-based business coverage.

1. Home-Based Business Coverage

A homeowners policy may give you some coverage for business-related items like books and tools, but chances are it won’t be enough. Some insurance companies offer home-based business coverage specifically, which extends your homeowners policy so that it includes things like:

  • Professional liability
  • Personal artwork
  • Books and magazines
  • Candy and confectionery products
  • Ceramic supplies
  • Clothing
  • Costume jewellery
  • Food and beverages
  • Kitchenware or home goods

Just note that there are certain eligibility requirements for this type of coverage. Speaking to an Insurance Consultant is the best way to get accurate information that’s specific to you.

2. Business Property Coverage

Unfortunately, your standard home property insurance won’t cover your business. Opting for specific business property coverage lets you extend your home property insurance. This way, if something unexpected were to happen on your property causing direct physical loss or damage to business property, it would be covered.

Note: Just like with home insurance, your business property insurance is only applicable if damage or loss occurs because of an insured hazard (things like fire, water damage, and wind). It’s a great idea to speak with your Insurance Consultant to make sure you understand which hazards are covered by your insurance before you have to file a claim.

Home-Based Business Insurance FAQs

Do home-based businesses in Manitoba need insurance?

Yes, all home-based businesses in Manitoba should have insurance. However, the exact type and amount of insurance you need will depend on the type of business you operate.

Chances are your home-based business is not covered under your standard home insurance policy. It’s also important to note that running a business out of your home can affect your home insurance policy. In fact, if your home-based business isn’t disclosed, it could actually be voided!

We want you to be covered in more situations, not less! So we recommend speaking with your Insurance Consultant as soon as you make the decision to open a business from home.

What other insurance options are available for home based businesses?

If your home-based business isn’t eligible for coverage under your standard home insurance policy, then we recommend business insurance.

How can home-based business owners get insured?

In some cases, you can get a quote online within a few hours. But, since every home-based business is different, we recommend speaking to an Insurance Consultant directly. This way, you’ll cut through any noise, and skip any confusion.

Get The Business Insurance You Need

No two home-based businesses are the same. Depending on the type of business you run, the cost and the extent of the coverage you need will range. If you have questions or want to learn more, get in touch with us. Will help you make the right decision for your business.