Best Home Based Business Insurance

Contributor, Benzinga

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Whether it’s your side hustle or your main gig, home-based businesses can often simplify life and improve your income and work-life balance. About 50% of businesses are home-based, according to the Small Business Administration. Your homeowners insurance isn’t designed to cover business needs, which is why it’s essential to buy home-based business insurance. 

Learn more about business insurance and how it works. 

What is a Home-Based Business?

A home-based business is a business that you run from your primary residence. Your home might serve as a temporary location while you get your business up and running or it might be the permanent home of your new business. 

Your home-based business can be anything from a bakery and catering service to freelance writing to accounting, counseling and more. Businesses that impact the neighborhood, like busy auto mechanic shops, may not be allowed depending on the zoning in your local area. If you’re unsure of whether you can operate your business from home, consult your local government or a business attorney. 

Best Home-Based Business Insurance

Which home-based business insurance is the best? Here are Benzinga’s top picks.

Next Business Insurance Next Business Insurance
get started securely through Next Business Insurance’s website
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NEXT is a business insurance provider dedicated to helping small business owners find affordable, customized policies that fit the unique risks of their industry. NEXT offers a complete suite of the most common business insurance protections that you might need, and you can apply for a policy entirely online.

Getting insurance through NEXT takes less than 10 minutes — simply choose your business type, answer a few questions about your experience and history and purchase coverage. You can adjust your policies and coverage limits to balance cost and protections with just a few clicks. 

Though NEXT’s 100% online model might not be right for everyone, it can be a strong contender for digital natives in search of affordable insurance. 

Best For
  • Small business owners looking for quick, affordable coverage available online
  • Apply for a policy in as little as 10 minutes
  • Policies customized to industry type and need
  • Discounts available on bundled policies
  • No option for paper policy application
  • May need to connect with a representative if your occupation isn’t listed
coverwallet coverwallet
get started securely through coverwallet’s website
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1 Minute Review

Shopping for business insurance can be a tedious process. It takes time to collect and review quotes and coverage unless you visit CoverWallet. CoverWallet, an Aon company, makes it easy to get quotes from multiple insurance providers.

With CoverWallet, you can start by talking with an insurance advisor or start directly with quotes. You can get quotes from multiple reputable insurers, including Hiscox, Chubb and Progressive. Choose from a wide range of coverage options to protect every area of your business, including workers’ compensation, general liability and commercial property insurance.

Once you decide on your insurance coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to send copies of your insurance certificates when needed, file claims and pay premiums. It keeps your policies organized and allows you to reach out to an expert at any time.

CoverWallet also offers extensive educational resources. You can review its recommended coverage by industry. You can also dig into more specific information based on your industry, location, number of employees and annual revenue.

The one drawback to the CoverWallet is that it doesn’t have a mobile app. You can still access the site through your mobile browser and you can call any time for assistance. Overall, CoverWallet makes it easy to shop for and buy business insurance, and it’s an excellent fit for small businesses and the self-employed.

Best For
  • Self-employed
  • Start ups
  • Small to medium businesses
  • Can get multiple quotes easily
  • Can learn about recommended insurance for your industry
  • Offers many types of insurance
  • No mobile app
Get Started securely through B2Z’s website
Disclosure: B2Z is available in the following states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, lowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin.
Same Day Coverage?
Online Application?
1 Minute Review

Tired of buying insurance for your small business the old-fashioned way? Forget about waiting around for that insurance agent to call you back. Now, B2Z has launched a full suite of insurance policies, including cyber insurance, workers’ compensation, professional liability and business owner’s policies (BOP). The B2Z platform uses AI to create personalized coverage just for you—all in as little as 5 minutes.

B2Z offers small business insurance in a language everyone understands. Easy applications, mobile claims and digital quotes are just a few of the ways B2Z makes buying insurance for your business fast and easy. Affordable, too.

Best For
  • One-Stop-Shop Coverage
  • Shopping Online
  • Hassle-Free Cancelation for Old Policy
  • User-friendly online portal
  • Multiple products
  • Digitally-based
  • AI-driven
  • Data sourcing
  • No phone call needed
  • No brick and mortar
  • Too fast-paced for some
The Hartford The Hartford
get started Call Now securely through The Hartford’s website
Same Day Coverage?
Online Application?
1 Minute Review

The Hartford is a leader in casualty and property insurance. It brings more than 200 years of experience in developing and providing insurance products. The company uses a quote-based pricing scheme to offer insurance in 2 main segments: commercial and personal lines. 

Its commercial segment serves over 1 million small businesses. The personal segment offers only nationally-endorsed home and auto insurance through the AARP® Insurance Program. The Hartford sells its products mainly through a network of independent brokers and agents. 

The company is also a 12-time honoree for the world’s most ethical companies according to The Ethisphere Institute. It delivers the name recognition and reputation of an experienced insurance carrier.

Best For
  • Those looking for an experienced insurance provider
  • Multiple coverage options with 1 carrier
  • More than 200 years of insurance experience
  • Provides online quotes
  • Has a solid financial rating
  • Offers a wide range of commercial insurance products
  • Pricing is entirely quote-based
Simply Business Simply Business
Get started securely through Simply Business’s website
Same Day Coverage?
Online Application?
1 Minute Review

When you’re a small business owner, you have a lot on your plate. Finding the best insurance policies for your business probably isn’t on the top of your list. Simply Business makes it easy to get the coverage you need. It’s a digital small business insurance agency, which means it offers coverage from multiple insurance carriers. 

With Simply Business you can compare quotes and coverage options from multiple companies to determine what’s best for you. Simply Business works with top providers like Hiscox, Travelers and Axis Insurance Company. 

You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away. 

Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography. 

While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance. 

If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break. 

Best For
  • Small business owners
  • Sole proprietors
  • Quick quote process
  • Licensed agents to assist you
  • Can choose from top insurance providers
  • No mobile app
Thimble Business Insurance Thimble Business Insurance
get started securely through Thimble Business Insurance’s website
Same Day Coverage?
Online Application?
1 Minute Review

It’s not often that you see something new in the insurance space but Thimble has come up with something unique — flexible small business insurance. You can buy liability insurance policies by the month, the day or even by the hour. Even better, you can apply in under 60 seconds. In this Thimble review, we’ll dive into how it works and how it can benefit your business. 

Best For
  • Handymen, landscapers and contractors
  • Self-employed individuals
  • Seasonal business owners
  • Freelancers who do multiple types of work
  • Flexible general liability and professional liability policy options
  • Fast application process
  • Ability to pause monthly coverage
  • High-quality mobile apps
  • No 24/7 Customer Support

What Does Business Insurance Typically Cover?

Business insurance covers a wide range of needs. Depending on the policies you purchase, it can protect your business property, including computers and printers, inventory and other equipment. It can also protect you if you’re sued over a client injury or damage to a client’s property. 

You can also purchase coverage that protects you if you’re sued due to professional negligence. If you use your vehicle for business purposes, you can buy a policy that protects you. 

Benefits of Home-Based Business Insurance

The benefit of home-based business insurance is that it protects your assets and the business you’ve built. A lawsuit can be devastating to any business, but especially a small one. Liability coverage helps pay for your legal defense costs and any awards or settlements. Property coverage helps ensure that you can rebuild if a worst-case scenario occurs. 

While it might seem like business insurance is just another expense, it’s worthwhile to have the protection you need. It provides security and peace of mind, and you can tailor your coverage to fit into your budget. 

What Kind of Insurance Do I Need for My Home-Based Business?

The type of insurance you need for your home-based business depends on the type of business you have. The best insurance for food businesses will be different than the best insurance for accountants. The insurance you need depends on whether you keep inventory, have employees, use your vehicle for business and more. 

Here are several types of business insurance to consider:

Business Property Insurance

This insurance helps you recover if your business property is damaged or destroyed. It typically covers losses due to theft, fire, lightning, smoke, vandalism and more. Damage from floods and earthquakes may not be covered, so if these are areas of concern, you may need to purchase separate policies to cover these perils. 

General Liability Insurance

Liability insurance protects you if a customer sues you due to bodily harm or property damage. For example, if a client trips while walking through your home to get to your office, they could sue. Or they could sue if you do work in their home and accidentally damage their property. Liability insurance helps to pay for your legal defense costs and the costs of any awards or settlements. 

Business Owners Policy (BOP)

One of the best small business insurance options is a business owners policy. This policy combines property insurance, liability insurance and business interruption insurance into one policy. Business interruption insurance helps to pay for your business costs if you’re unable to operate due to a covered event. Buying these policies together is usually less expensive than buying them separately. 

Business Auto Insurance

You may need business auto insurance if you have a vehicle that’s primarily used for business, like a catering van or a pickup truck for a home repair business. Business auto policies are similar to personal auto policies in that you can tailor your coverage. You can choose a policy that just meets your state’s minimum requirements or you can choose one with more extensive coverage. 

State minimum coverage typically includes liability insurance, which helps pay for bodily injuries and property damage to other parties if you or an employee is in an at-fault accident. Some states also require you to have uninsured/underinsured motorist coverage, which helps cover costs if you’re involved in an accident with an uninsured driver or one who doesn’t have enough insurance. 

Your state may also require personal injury protection. This helps pay for the medical expenses of you and any passengers. 

You may also want optional coverage. Collision coverage pays for damage to your vehicle if you’re involved in an at-fault or single-vehicle accident. Comprehensive coverage helps pay for damage that’s not related to an accident, including theft, fires and vandalism. 

An insurance agent can help you determine whether you need business auto insurance and what coverage would be the best fit. 

Professional Liability Insurance

While you strive to always give accurate advice, sometimes things go wrong. Professionals who give advice, design things or give recommendations should consider professional liability insurance. 

This coverage helps cover your costs if you’re sued due to professional negligence. It helps to cover your legal defense fees and any settlements or awards. 

Workers’ Compensation Insurance

In every state except Texas, you need workers’ compensation insurance if you have one or more employees. This coverage pays for medical care for your employees if they have a work-related injury or illness. It also helps make up for their lost wages if they need time off and it may help with rehabilitation if they’re unable to return to their previous job. 

Umbrella Insurance

Most business insurance policies, including business property, general liability and BOPs, have policy limits. If a claim exceeds those policy limits, you’re responsible for the costs unless you have umbrella insurance. 

Umbrella insurance starts paying when your policy reaches its limits and pays until its limits are exhausted. It may also offer coverage not provided by your other insurance. For example, it might cover your deductibles. 

Cost of Home-Based Business Insurance

The cost of home-based business insurance depends on several factors, including:

  • Where you live
  • The type of business you have
  • The number of employees you have (if any)
  • The size of your payroll
  • Your claims history

Here are the average costs of several types of home-based business insurance.

PolicyAnnual PremiumCoverage Limit
General Liability Insurance$350$2 million
Commercial Property Insurance$755$60,000
Business Owners Policy$400-$2,500$1 million per occurrence/$2 million per policy term
Workers’ Compensation$560n/a
Commercial Auto Insurance$1,700$1 million
Commercial Umbrella$500-$1,500$1 million

Home Insurance vs. Home-Based Business Insurance

Home insurance is designed to protect your home as a residence. It covers the physical structure of your home and your personal belongings. It’s not designed to protect business needs. For example, it may have limited coverage when it comes to your business inventory and equipment, including computers. It wouldn’t provide any protection when it comes to business-related liability issues. 

If your business is very small, you may be able to add an endorsement to your homeowners insurance policy to cover your business needs. For most businesses, buying a business policy may make more sense. An experienced insurance agent or broker can help you decide which option is the best fit for you. 

Do You Need Home-Based Business Insurance?

If you keep inventory in your home, have specialized equipment, have clients in your home or have employees, you should have home-based business insurance. To find the right coverage for you, contact multiple insurance providers. 

Keep in mind that a lot of factors influence your insurance costs. For example, the best business insurance in California will have different costs than the same insurance purchased in Ohio. Ask potential insurance companies about discounts and other options for lowering your insurance costs. 

While insurance might seem expensive, the peace of mind is well worth the investment.