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The typical homeowners' insurance policy covers a maximum of $2,500 for business equipment in the home, according to the Insurance Information Institute. It usually doesn't cover business-related liability if a customer or supplier is injured on your property. "To cover a home business definitely adds to the premium due to the increased chance of loss, both from a property and liability point of view," says Anderson of State Farm. "In many cases we recommend such a policy through our business lines, which provides much broader coverage than a basic homeowners' policy." If you don't notify your insurer of your business's existence and an accident occurs, chances are you won't be covered.