Do home-based businesses require general liability insurance coverage?
Even though home-based businesses might present a lower risk profile than larger commercial ventures, they still have some liability risks to consider. Should anyone sue them for an accident, defamation allegation or other covered lawsuit, these businesses probably lack the financial resources needed to fight a major lawsuit.
Thus, it’s broadly recommended that home businesses consider getting general liability coverage. No business owner wants to risk bankruptcy due to legal expenses, regardless of the size of their business.
Sometimes homeowners insurance policies may be helpful with insuring a home business. Policies may offer basic business coverages, possibly including general liability protections, as an endorsement or (possibly) standard feature. If business coverage is not available through a homeowners policy, a general liability policy is likely in order.
An insurance agent specializing in general liability coverage can help home business owners evaluate their coverage options.