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| Best Business Insurance For Home-Based Business |
✅ 1. General Liability Insurance
What it covers:
- Bodily injury (e.g., a client trips over a laptop cord in your home office)
- Property damage (e.g., you spill coffee on a client’s laptop)
- Personal & advertising injury (e.g., defamation, copyright infringement in your marketing)
Why it matters for home-based businesses:
- Often required by clients, platforms (like Upwork), or venues.
- Not covered under standard homeowners insurance.
Available from: Hiscox, Next, Thimble, The Hartford, State Farm, Nationwide
✅ 2. Business Owner’s Policy (BOP)
What it covers:
- Combines General Liability + Commercial Property Insurance
- May include business interruption coverage (if an event like a fire halts operations)
Commercial property coverage includes:
- Business equipment (computers, cameras, printers)
- Inventory or raw materials stored at home
- Furniture or signage used for business
Best for: Home-based businesses with physical assets (e.g., craft sellers, photographers, consultants with tech gear)
Available from: The Hartford, Hiscox, Nationwide, State Farm, Travelers
⚠️ Note: Standard BOPs may exclude home-based operations—confirm with the insurer.
✅ 3. Professional Liability Insurance (Errors & Omissions – E&O)
What it covers:
- Claims of negligence, mistakes, missed deadlines, or inadequate work
- Legal defense costs, settlements, or judgments
Who needs it:
- Consultants, coaches, accountants, web designers, marketers, real estate agents, tutors
Example: A client sues you for a website bug that cost them sales.
Available from: Hiscox (top-rated for freelancers), Next, The Hartford, biBERK, CNA
✅ 4. In-Home Business Insurance / Homeowners Endorsement
What it covers:
- Homeowners endorsement: Adds limited coverage (usually up to $2,500–$5,000) for business property
- In-home business policy: Standalone policy for higher limits, liability, and income loss
Why you need more than a homeowners policy:
- Standard homeowners insurance excludes business activities
- Damage to business equipment or liability claims during work = denied claim
Available from: State Farm, Allstate, Nationwide, Farmers, USAA (for military families)
✅ 5. Cyber Liability / Data Breach Insurance
What it covers:
- Costs from hacking, ransomware, phishing, or accidental data leaks
- Client notification, credit monitoring, legal fees, regulatory fines (where insurable)
Who needs it:
- Anyone storing client info (emails, payment details, health data)
- E-commerce, virtual assistants, coaches, therapists, bookkeepers
Available from: Hiscox, Next, biBERK, Chubb (via brokers), Coalition
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✅ 6. Commercial Auto Insurance
What it covers:
- Vehicle damage, liability, medical payments when used for business
- Includes deliveries, client meetings, supply runs
Why personal auto insurance isn’t enough:
- Most personal policies exclude business use beyond commuting
Available from: State Farm, Geico Commercial, Progressive Commercial, Nationwide
🚗 Tip: If you only drive occasionally for work, ask about a business-use endorsement to your personal policy.
✅ 7. Product Liability Insurance
What it covers:
- Injury or damage caused by a product you make or sell (e.g., candles, skincare, food, toys)
Critical for:
- Home bakers, soap makers, crafters, Etsy sellers
Example: A customer has an allergic reaction to your homemade lotion.
Available from: Hiscox, The Hartford, Next, biBERK, CoverWallet (aggregator)
✅ 8. Business Interruption Insurance
What it covers:
- Lost income if your business is temporarily shut down due to a covered event (fire, storm, etc.)
Note: Often included in a BOP—but only if the cause is a covered physical loss.
- Does not cover pandemics or power outages unless added via endorsement.
Available from: The Hartford, Nationwide, Chubb, Travelers
🏠 For home-based businesses, ensure your policy recognizes your home as the business location.
✅ 9. Workers’ Compensation Insurance
What it covers:
- Medical costs and lost wages if an employee is injured on the job
Do you need it?
- Required by law in most states if you have employees (including part-time or family members in some states)
- Sole proprietors without employees usually don’t need it—but can buy it voluntarily
Available from: State-specific providers (e.g., EMPLOYERS, AmTrust, The Hartford, State Fund in CA)
✅ 10. Commercial Umbrella Insurance
What it covers:
- Extra liability coverage beyond your general or auto policy limits (e.g., up to $5M)
Best for:
- Businesses with higher risk exposure or client contracts requiring >$1M coverage
Available from: The Hartford, Nationwide, Chubb, Hiscox (limited)
✅ 11. Equipment Breakdown Insurance
What it covers:
- Repair/replacement of business equipment due to mechanical/electrical failure (not just fire or theft)
Example: Your editing computer fries due to a power surge.
Often added as an endorsement to a BOP or in-home business policy.
Available from: The Hartford, Nationwide, biBERK
✅ 12. Hired & Non-Owned Auto (HNOA) Insurance
What it covers:
- Liability when employees or contractors use their personal vehicles for your business
Needed if: You ask freelancers or staff to run business errands
Available from: Hiscox, Next, The Hartford
💡 Final Tips:
- Use digital brokers like CoverWallet, Insureon, or Next Insurance to compare multiple quotes fast.
- Always disclose that your business operates from home—misrepresentation can void coverage.
- Review policy exclusions carefully (e.g., some exclude food businesses or high-risk crafts).