Whether sole proprietors who run home businesses need business property insurance depends on the terms of their Homeowner's Insurance, their business’ assets and other factors.

Some homeowner's policies offer basic coverage for home offices.

Not all policies will cover a home office or equipment that’s used for a business, though, and those that do may offer only minimal protection.

Sole proprietors who are in this position ought to seek the advice of an informed insurance agent. An agent who specializes in business property coverage will be able to determine whether this type of insurance is necessary given a specific business’ situation.

Commercial Property policies might offer a variety of protections. There are two main protections, however, that most policies make available:

• Building Coverage, which is normally used to insure buildings and structures

• Contents Coverage, which is normally used to insure equipment and inventory