Home Based Business Insurance: Quotes, Cost & More

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The relentless advance of technology has made it easier than ever to work from home. You can run countless different businesses online - from a pet sitting service, through a home bakeryfitness classesmakeup business to a hair salon and even a spa from the comfort of your own home! 

However, even while operating a business at home, it’s a good idea to get some commercial insurance so that your home business is always protected.

In the vast majority of cases, your basic homeowners or renters insurance policy won’t come into effect if you’re using your home for a commercial purpose. In this guide, we’re going to explore what kind of home based business insurance you’ll want to get your hands on and how much it will cost you.

Home Based Business Insurance Cost

In general, the average home based business insurance cost is extremely affordable, about $19 per month - or $226 per year.

However, the cost of insuring a home based business varies widely due to the vast differences in scale of many home based businesses. While you might assume that every business that operates from home will be on the smaller side of things, that isn’t always the case anymore, especially for digital businesses.

A larger business will have a larger amount of potential liability, so that’s always the main factor that goes into an insurer determining your premium. However, you’ll also have to account for the number of employees that you have on your payroll and your history. After all, an insurer will likely charge you more if you have a history of accidents at work.

That said, please find some average work from home insurance rates from some leading insurers below:

CompanyCost per monthCost per year
The Hartford$37$444

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Home Based Business Insurance Coverage

Let’s say you run a small bakery out of your kitchen, what kind of home based bakery insurance policy would work best for you? Many home-based businesses opt for liability insurance since that will cover you from the most common lawsuits that customers file against businesses, but there’s more to small home business insurance than just liability coverage.

For example, if you run a tech-based business from your home, then you may want to acquire a cyber insurance policy. If your devices end up getting infected with a virus, the policy will pay out so that you can recover your files without having to put a cent of your own money into it.

You may also wish to insure any equipment that you use for your business that’s around the house. Using the bakery example from earlier, you can insure your stand mixers and other kitchen implements to ensure that you don’t have to pay out of pocket to replace them in case something goes wrong.

You can also opt for business insurance for home based business, which essentially combines liability coverage and commercial property coverage into one. This means that your home will also be covered while you’re working in it, which may not be the case for a basic homeowners policy.

Home Based Business Liability Insurance

There are several types of liability insurance for home based businesses, though the two most common are general liability and professional liability. General liability covers you from third parties who end up getting injured while on your property, including customers and potentially even employees.

On the other hand, professional liability insurance is also commonly known as E&O (errors and omissions) coverage. This will cover you in case someone sues you for negligence in your job. For example, if you own a software design business and your software is shipped with a virus due to your negligence, this coverage may kick in.

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Home Based Business Insurance Companies

Selecting the best home based business insurance policy is typically a hard work. However, by clicking the 'Get Quotes' button below and completing the form, you will be able to easily compare countless home based business insurance quotes and coverage options online from the best home based business insurance companies in America!  

In addition, to further make life easier for you, here are three of the best companies you can work with if you’re looking to get your working from home business insurance. We do, however, recommend you to compare quotes from them as well as other insurers through our tool so you get as many options as possible.

The Hartford Home Based Business Insurance

The Hartford was founded about 211 years ago, in 1810. As the name would suggest, the company started off in Hartford, Connecticut. This financial services company has grown into one of the largest property insurance companies in the United States, though it also handles auto and business insurance.

The Hartford Policy Details

The Hartford’s running a business from home insurance policy is scalable to meet the needs of home businesses both small and large. The company offers several different policies for home-based businesses, including general liability coverage, BOPs, and even BOPs with endorsements.


  • Endorsements allow you to customize your policy

  • Scalable coverage

  • Policies can also include employment practices liability insurance


  • Expensive

Average Cost: $37 per month

Best for: Growing businesses

Our Rating: 4.5/5


Hiscox specializes in niche insurance in both the personal and commercial spaces. The company is an underwriter for Lloyd’s of London, and it was originally founded in 1901 with the purpose of underwriting marine insurance. There’s no limit to what Hiscox will insure, ranging from satellites to home based businesses.

Hiscox Policy Details

Hiscox offers a range of different coverage options for home based businesses, including general liability coverage, professional liability coverage, and business owner’s policies. One of the best things about Hiscox is that they have a quality online presence that makes it easy to purchase and manage your policy.


  • Easy to work with online for both purchase and policy management

  • Provides great value for your money

  • Offers great general liability and professional liability insurance coverages for home based businesses as well as BOP


  • May conflict with existing homeowners insurance policies

Average Cost: $29 per month

Best for: Businesses in safer neighbourhoods

Our Rating: 4.7/5

Progressive Home Based Business Insurance

While Progressive’s main industry may be auto insurance, the company also specializes in covering businesses and property. Progressive is one of the 100 biggest companies in the United States based on revenue, and it has been in business for nearly 85 years, having been founded in 1937.

Progressive Policy Details

Progressive offers a range of different kinds of coverage under their working from home business insurance policies. These include but are not limited to general liability, professional liability, workers’ compensation, and even commercial auto insurance.


  • Quick quotes through their website

  • Relatively cheap

  • Bundle deals


  • Not all policies are handled directly

Average Cost: $23 per month

Best for: Small home based businesses

Our Rating: 4.7/5

Compare Home Based Business Insurance Quotes

Get all the best quotes from leading providers in a click of a button!

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