Your homeowners policy will not cover your business. It excludes business liability and professional services, and caps business property at a token amount. A home based staffing firm still needs professional liability first, and general liability as soon as a client, landlord, or coworking operator asks. Who this is for: Staffing firms working from home or a coworking desk.
The short version
- Homeowners policies exclude business liability and professional services entirely.
- Business property at home is typically capped around $2,500, which one workstation can exceed.
- Professional liability is the priority even with no office and no visitors.
- Coworking spaces and landlords require a general liability certificate naming them as additional insured.
- Equipment that travels is better insured on inland marine than on a fixed location property policy.
What your homeowners policy will not do
- Business property is capped at a token amount, commonly $2,500 on premises and less off premises. A laptop, monitors, and a camera can exceed that in one room.
- Business liability is excluded. A client who visits and is injured is not covered.
- Loss of business income is not covered at all.
- Professional services are excluded outright, so none of your Errors and Omissions (E&O) exposure is touched.
Homeowners insurers write these exclusions on purpose. The fix is not an argument with your carrier, it is the right business policy alongside it.
What to buy instead
| If you | Buy | Typical annual cost |
|---|---|---|
| Work from home alone, no client visits | Professional liability plus a home business endorsement or small business owners policy | $2,500 to $3,400 |
| Work from home and meet clients there | Professional liability plus general liability | $3,400 to $4,000 |
| Use a coworking space | Professional liability plus general liability, since the operator will require a certificate | $3,400 to $12,000 |
| Lease your own office | A business owners policy plus professional liability | $3,600 to $15,000 |
The coworking and landlord requirement
Coworking operators and commercial landlords almost always require a general liability certificate naming them as additional insured, commonly at $1M per occurrence and $2M aggregate. It is inexpensive, it is a condition of the lease or membership, and it takes a day to produce once your policy is in place.
The equipment question
Laptops, monitors, cameras, and the gear you carry to client sites are often better covered on an inland marine or portable equipment schedule than on a property policy, because inland marine follows the property anywhere rather than covering it only at a listed address. For a staffing firm carrying equipment between home, client sites, and recruiters driving to client sites and transporting workers, that difference is the whole point.
Related reading: does a homeowners policy cover a home based business.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A home based staffing firm that assumed its homeowners policy plus a personal umbrella was enough.
The claim: The matter started with a placed nurse working outside the scope of the credential on file. The hospital tendered a patient claim back to the agency under the staffing agreement.
The cost: $72,000 in defense costs and $210,000 in settlement, $282,000 in total, paid inside the policy limit after the retention.
The lesson: The professional claim was excluded by both policies. A standalone professional liability policy costing a fraction of the loss would have answered it.
Frequently asked questions
Q: I work from home. Do I still need business insurance?
Yes. Homeowners policies exclude business liability and professional services, and cap business property at a token amount. Professional liability is the priority, with general liability added when clients or a landlord require it.
Q: Does my homeowners policy cover my work laptop?
Only up to a small business property limit, commonly $2,500 at home and less away from home. Equipment used for business is better covered on a business policy or an inland marine schedule.
Q: Do I need general liability if no client ever visits me?
Not for premises risk, but you will still be asked for it by clients, coworking operators, and landlords. It is usually a few hundred dollars and it unblocks contracts.
Q: What does a coworking space require?
Typically a general liability certificate at $1M per occurrence and $2M aggregate, with the operator named as additional insured. Your broker can issue it the same day.
Q: Is a business owners policy worth it for a home based staffing firm?
Once you have meaningful equipment, or any interruption to your work would cost real income, yes. Below that a home business endorsement plus professional liability is often enough.
Q: Does working from home lower my premium?
Slightly on property and general liability, because there is less premises exposure. It does not change professional liability, which is rated on your work rather than your address.
How Morrow helps staffing firms
Morrow is a licensed independent commercial insurance brokerage that specializes in staffing & recruiting firms. Covering a home based or coworking firm properly is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for staffing firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for staffing firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.