A lot of folks have businesses in their homes and don't realize the risk they are putting themselves at by not having proper insurance coverage. The typical Homeowner's policy has very limited coverage if any for a home business. We recently spoke with a person who had a small daycare in her home. She had no idea that if one of the children she looked after were hurt on her primises the would likely be no coverage on her homeowner's policy or personal umbrella. The particular company she was with could offer additional liability coverage for that, but she didn't have it.
Then there was the Mary Kay consultant that had over $12,000 of product in her home. Guess what? No coverage. If you are running a business from your home you need to investigate what insurance you need. If you haven't addressed this issue chances are you have no coverage.