Whether you operate your small business out of your home, or you rent, lease or own a commercial space — you need commercial property insurance. Commercial property insurance doesn’t only protect the building you use, but a long list of things inside including equipment, inventory, furniture, computers and other electronics. It can also provide protection for things outside of the building including outdoor signs, fencing and landscaping such as gardens, trees and shrubs.

Benefits of commercial property insurance:

Recovery process following a loss: Suffering a loss to your small business can be a traumatic experience, and the longer it takes to get back on your feet, the worse the experience can become. If damage is done to your property as a result of an insured peril, the right policy can help get you back up and running quickly, which can help mitigate the long-term effects of the loss. By limiting your business’ downtime, you also maintain your business’ continuity and protect your reputation with your customers.

Repair costs: If your business suffers a covered loss, your commercial property insurance policy can help with the repair costs to get you back in business quickly. For example, if you own a commercial space, and someone vandalizes the door to your business preventing customers from entering the building, the right small business insurance policy will help get the repairs done quickly and help keep the costs to your business down.

Replacement costs: If the covered loss to your property is too extensive for repairs, commercial property insurance can often help with the replacement costs. For example, if you own a bakery and a fire breaks out in your kitchen destroying your electrical oven, your commercial property insurance policy can help keep the replacement costs low and protect your bottom line.

Business interruption coverage: If you suffer a covered loss, you likely won’t be able to sustain operations right away. The right commercial property insurance policy may be able to mitigate your loss of income to help you keep up with bills, payroll and other expenses until you’re back on your feet.

Unexpected losses: No matter how much you prepare your small business for the risks it faces, sometimes unexpected disasters happen. Natural disasters are often out of our control and can cause significant property damage. Instances of fire, winter storm damage, hail and some forms of water damage may be covered in your commercial property policy to help you keep costs down in these unforeseen situations.

It’s important for small business owners to know that neither homeowners’ nor renters’ insurance policies cover home-based businesses. Therefore, if you run a business out of your home, it’s wise to work with an insurance professional who can provide you with more details on the kinds of home-based business insurance that’s available for your business.

The type of coverage you need for your home-based business will depend on your business or industry. Some types of home-based business insurance include:

Business Property Insurance – If you use any kind of equipment to run your home-based business, including a computer, fax machine, printer, furniture, etc., you should have business property insurance to be insured against loss or damage to property used in your business. That’s because your homeowners’ policy doesn’t typically provide coverage for business equipment losses by fire or flood. Instead, you’d need business property insurance.

Liability Insurance – If you have clients or other visitors come to your house for business purposes, then liability insurance is necessary. Liability insurance protects you and your business from being liable for damages caused to another person or property. Again, your homeowners’ policy won’t protect you from claims made from business visitors who may have been injured at your home-based business. For example, if someone making a business delivery to your home slips and falls, you’ll need liability insurance, not homeowners insurance, in order to be covered.

Professional Liability (Acts Coverage) – Similar to professionals working out of their home, professionals working inside their home need professional liability insurance. If you’re a consultant or working professional, professional liability insurance can protect you against potential negligence or failure to deliver claims made by your clients (or patients).

Product Liability Coverage – If you run a business that makes or supplies a product, speak with your insurance professional about product liability coverage, which protects your business for damages to property or a person caused by a product you designed, manufactured or supplied.

Business Automobile Coverage – If you need to make (or pick up) deliveries, visit clients or otherwise use a vehicle for business purposes, your personal auto policy won’t cover the business use of the vehicle. Instead, you’ll need business automobile coverage, which will provide coverage if you are in an accident.

Other Coverages – There are other home-based business insurance coverages that may be important, depending on your business. For example, if your business has employees, you may need workers compensation insurance. Commercial crime insurance protects against losses from equipment theft, fraud and other crimes. Furthermore, endorsements and riders on homeowners’ policies in addition to specialty home and office policies are important coverages that small business owners should consider.

So, does your home-based business need insurance? Based on the plethora of potential business liabilities, you’re probably better off having at least a combination of a few policies in place, depending on your business needs. And that could be one less thing to keep you up at night—even if it is in your home-office.