Home Based Business Insurance: Cost & Quotes From $11

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Your home based business has lesser exposures than brick-and-mortar businesses. But still, risks are there. Take care of these by getting the right commercial insurance. Specifically, home based business insurance.  


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 how tailored home based business insurance helps and how much it will cost.

Home Based Business Insurance Coverage

If you’re earning income through a home based bakery, candle-making and retailing business, dog walking or pet sitting business, personal training business, or designing business, then you can protect yourself from risks through a tailored home-based business insurance coverage. 

Tailored home-based business insurance isn’t required by law. However, you’ll need this if you’re selling items on large bulks as a vendor,  want clients to avail services, or planning to make it big on online marketplaces (For example, amazon sellers are required to purchase business insurance and name Amazon as an additional insured).

Most home-based business insurance begins with liability insurance policies.  These are then accompanied by other business insurance policies depending on the nature of your home based business.  Let’s discuss what liability insurance is. 

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Home Based Business Liability Insurance

There are several types of liability insurance for home based businesses - general liability insurance, professional liability insurance, and more. The type of liability insurance available depends on the type of your home-based business. But still, in most cases, insurance companies will always allow you to get general liability insurance. 

Home Based Business General Liability Insurance 

It doesn’t matter whether you’re a catererwriter/media professional, or any other kind of home based business possible, general liability insurance is always useful. 

General liability insurance is the primary coverage offered in small home business insurance. This will protect you from:

  • Third-party personal injury claims - Your home based business caused an accident that resulted in clients, vendors, and other third parties incurring injuries. The injured parties then filed a claim and demanded you to pay for their pain, suffering, and medical costs

  • Third property damage claims - Your home based business caused an accident and the property of vendors, customers, and other third parties got damaged. Affected individuals filed a claim and want you to reimburse their losses


General liability insurance has optional policies. These optional policies allow general liability insurance to do more for you:

  • Advertising injury liability coverage

  • Products and completed operations coverage


Third-parties might accuse your home based business of committing reputational harm, plagiarizing an ad or any other promotional material, and failing to provide a service advertised. Advertising injury coverage will help you in such an event. Basically, this optional policy in general liability insurance will pay for defense costs and settlements if someone sues you for defamation, libel, slander, copyright infringement, and false advertising. 


Add products and completed operations to general liability insurance if you’re a home-based personal trainer, app developer, interior designer, yoga instructor, etc. A service you accomplished might have caused personal injury or property damage to past clients. Products and completed operations coverage will cover defense costs, compensation, and other expenses if past clients decide to file a personal injury claim or property damage claim. 


Public Liability Insurance for Home Based Businesses

Public liability insurance is a liability insurance that has the same function as general liability insurance. 

To discuss things further,  the language of public liability insurance is included in general liability insurance. Meaning that it’s the least comprehensive. Public liability insurance will only take care of personal injury claims and property damage claims from third parties. Meanwhile, general liability insurance is more comprehensive because it doesn’t only cover personal injury and property damage but also advertising injuries and claims arising from a completed product or service. 

One quick clarification. Other sources state that general liability is more comprehensive than public liability because it can cater to employee claims and visitor claims. This is wrong. Public liability and general liability cater to claims from third parties - meaning customers, visitors, and others. None of the two caters to claims made by employees. 


Home Based Business Professional Liability Insurance

Professional liability insurance is useful if you’re a home-based business making money by providing professional services to clients. Specifically, you need to get this liability insurance if you’re a home based:


While providing a service, you might commit an act constituting errors or omissions and end up causing economic or financial losses to clients. If clients decide to file negligence or malpractice claims, professional liability insurance takes care of defense costs, settlements, and other expenses on your behalf.  Professional liability insurance doesn’t only cover negligence or malpractice but also:

  • Misrepresentation

  • Violation of good faith and fair dealing

  • Breach of confidentiality

  • Inaccurate advice


What is E&O Insurance?

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 will kick in.


Product Liability Insurance

Product liability insurance is useful if you’re a home based business generating income by selling items. Invest on this liability insurance if you’re a:


So what does this insurance do? Product liability insurance will cover costs if a client files a claim because you sold a defective product, which caused injuries and property damage.  Just like professional liability insurance and general liability insurance, product liability insurance will take care of defense costs, settlements, and other legal expenses. 

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What Other Business Insurance for Home Based Business Do You Need?

Product liability insurance, general liability insurance, and professional liability insurance aren’t the only protection available for your home based business. Insurance companies also include any of the following in a tailored home based business insurance plan:

  • Commercial property insurance

  • Commercial auto insurance

  • Workers compensation insurance

Commercial Property Insurance for Home Based Business

As a home based business, you’re thinking that commercial property insurance isn’t useful because there’s no commercial space to protect. You might want to reconsider. Commercial property insurance can still help.

Commercial property insurance has business equipment and tools coverage. If you’re a home based jewelry maker, watch technician, sculptor, candlemaker, and any other type of artisan, business equipment and tools coverage will be useful. Basically, what it does is reimburse losses if specialty tools and equipment become lost or damaged due to fire, theft, vandalism, extreme weather, and other covered perils.

Stocks and equipment coverage in commercial property insurance will be truly useful if you’re a home based business making money by selling things. If stocks and raw materials in your inventory become damaged or lost due to fire, theft, vandalism, and other covered perils, stocks and contents coverage will reimburse your losses equal to the value of the insured items.

Home Based Business Commercial Auto Insurance

Commercial auto insurance covers the vehicle you own and use for business purposes. A typical home based business commercial auto insurance offers the following protection:

  • Auto liability coverage

  • Physical damage coverage

  • Hired/non-owned auto coverage

Your home based business’s commercial vehicle might cause an accident and injure third parties or damage property. The job of auto liability coverage is to pay for the treatment and medication of the injured. It also reimburses the losses of individuals who had their property damaged. Remember though that commercial auto insurance won’t cover your back if you caused the accident while engaged in the following:

  • Driving under influence

  • Overspeeding

  • Driving without a license

  • Driving without insurance or adequate insurance

  • Driving with no headlights

Physical damage coverage will pay for the parts repair or replacement of your commercial vehicle. This has two forms:

  • Collision physical damage coverage - If your commercial vehicle incurred damage because it collided with a vehicle or an object, collision physical damage coverage will pay for parts repair or replacement

  • Comprehensive physical damage coverage - If your commercial vehicle incurred damage because of lightning, wind, hail, storm, other acts of nature, vandalism, theft, or other covered perils, comprehensive physical damage coverage will take care of parts repair or replacement

Repairs take long and your commercial vehicle might have to stay in the auto repair shop for a while. If you need to borrow or rent another vehicle, then hired/non-owned auto coverage will be useful. Hired/non-owned auto coverage will cover your liability if the vehicle you’re borrowing or renting causes an accident.

What is Rental Reimbursement Endorsement?

Rental reimbursement coverage is an endorsement to commercial auto insurance. Not all insurance companies offer this. The job of rental reimbursement endorsement is to give back what you spent for car rental while your commercial vehicle is at the auto repair shop.

Workers Compensation Insurance

If your home based business has one or two employees, then authorities might require the purchase of workers compensation insurance. Workers compensation insurance does the following when an employee suffers from a work-related injury or disease:

  • Pay for emergency medical treatment/procedure

  • Pay for hospital bills

  • Pay for medication and rehab

  • If the employee needs to take a break, compensate lost income (lost income compensation is equal to 67% of the average weekly wage)

  • If the employee dies, provide death benefits to the wife, children, and other dependents (death benefits is equal to 67% of the average weekly wage)

Home Based Bakery Insurance

Home based bakeries/bakers can get protection through a tailored home based bakery insurance. Liability policies included are general liability insurance, professional liability insurance, and product liability insurance.

There’s also workers' compensation insurance that kicks in when an employee suffers from a work-related injury or disease such as burns, cuts, baker's asthma, and others. Insurance companies include workers' compensation in home based bakery insurance because the prevalence of work-related hazards is high.

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Home Based Business Insurance Cost

The average home based business insurance cost is extremely affordable, about $19 per month or $228 per year for a $1 million general liability coverage.

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 yearBest for
Home based business insurance quotes comparison online
Thimble$17$204On-demand home based business insurance available as a temporary insurance policy
Hiscox$24$288Liability insurance for home based business having more than $2 million limit
Progressive$30$360Small home based businesses
The Hartford$37$444Growing businesses

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Best Home Based Business Insurance Companies

Selecting the best home based business insurance policy is sometimes hard. 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 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. That said, read the reviews to know each company's pros, cons, and rate for a $1 million general liability coverage. 


CoverWallet Home Based Business Insurance



  • Cancel a policy anytime

  • Compare quotes and find the best pricing

  • Manage your insurance online


  • Not an insurance company but an insurance broker


CoverWallet is an online insurance broker with an online quotes comparison platform you can use to find insurance policies that fit the needs of home based businesses. This insurance company covers all types of home based businesses except those that provide specialty services or goods to customers. Business insurance policies you can get from CoverWallet are:

  • Commercial property insurance

  • General liability insurance

  • Professional liability insurance

  • Business owner’s policy -  a combination of general liability and commercial property insurance CoverWallet added with workers comp insurance

  • Product liability insurance

  • Commercial auto insurance


Best for: Home based business insurance quotes comparison online

Average cost: $15 per month

Our rating: 10/10


Thimble Home Based Business Insurance



  • On-demand and short-term home based business insurance

  • Covers home based event vendors, craft businesses, and freelance/professional service businesses

  • Get ACORD certificate of insurance

  • File a claim wherever you are


  • Doesn’t offer a BOP for home based businesses


Thimble’s home based business insurance is available for event vendors, craft businesses, and freelance and professional service businesses.  General liability insurance is the only inclusion. However, this is okay because Thimble insures you in an instant.  You can even choose to only get covered for only hours, days, weeks, or months. 


Best for: On-demand home based business insurance available as a temporary insurance policy

Average cost: $17 per month

Our rating:  9/10


Hiscox Home Based Business Insurance



  • 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


  • Low rating on Better Business Bureau


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 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.


Best for: Liability insurance for home based business having more than $2 million limit

Average cost: $24 per month

Our rating: 8/10


Progressive Home Based Business Insurance



  • Quick quotes through their website

  • Relatively cheap

  • Bundle deals


  • Not all policies are handled directly


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 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.


Best for: Small home based businesses

Average cost: $30 per month

Our rating: 7/10


The Hartford Home Based Business Insurance



  • Endorsements allow you to customize your policy

  • Scalable coverage

  • Policies can also include employment practices liability insurance


  • Expensive


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’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.


Best for: Growing businesses

Average cost: $37 per month

Our rating: 6/10

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