Many people who now have either a 1st or 2nd job working from home, mistakenly think their homeowner insurance will cover this venture.
Homeowners insurance was never meant to cover business pursuits and thus, has exclusions built in to not pick up this coverage.
You need to review your own situation to see what the risks are.
Do you cut hair in a spare room and have people coming into your home? Do you do taxes, also inviting clients into your home? Or do you have an online business, with little or no physical contact with customers? What risks does what you do present to putting your home at risk? For example, business property (your computer, your desk, your inventory) are covered for no more than $2,500 on a homeowner policy.
And business liability is almost never picked up by a homeowner policy.
Some very low risk businesses, like an accountant, could "extend" liability from a homeowner policy to cover their risk.
But 98% of the businesses out there cannot do this, they must get a separate business liability policy.
This can be dome with either an "In Home Business" policy or with a Business Owners Policy (BOP in insurance lingo is what we call it).
Find an independent insurance professional who can help you determine what risks your home-based business has and whether a separate insurance policy is required.
Be a smart business owner and know what risks you face.
Don't assume something, only to find out after a claim, that you are not covered.