Best Business Insurance for Home-Based Businesses in 2024 (Top 10 Companies)
State Farm, Progressive, and Allstate offer the best business insurance for home-based businesses, offering tailored coverage at competitive rates. With rates starting at $20 per month. Protect your home-based business with the right coverage today and safeguard your livelihood against unforeseen risks.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Oct 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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17,760 reviewsCompany Facts
Full Coverage for Home-Based Businesses
A.M. Best Rating
Complaint Level
Pros & Cons
17,760 reviews
13,128 reviewsCompany Facts
Full Coverage for Home-Based Businesses
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
11,413 reviewsCompany Facts
Full Coverage for Home-Based Businesses
A.M. Best Rating
Complaint Level
Pros & Cons
11,413 reviews
Evaluate the range of coverage options available, including discounts and customer feedback, to identify the most competitive rates tailored to your specific requirements.
Our Top 10 Company Picks: Best Business Insurance for Home-Based Businesses
| Company | Rank | Multi-Policy Discount | Home-Based Business Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 7% | Multi-Policy | State Farm |
 | #2 | 12% | 8% | Safe-Driving Discounts | Progressive |
 | #3 | 15% | 10% | Policy Options | Allstate |
 | #4 | 12% | 7% | Cyber-Liability Coverage | Nationwide |
 | #5 | 11% | 6% | Tailored coverage | Travelers |
 | #6 | 10% | 5% | Local Agents | Farmers |
 | #7 | 13% | 8% | Payment Options | Liberty Mutual |
 | #8 | 14% | 9% | Industry-Specific Coverages | The Hartford |
 | #9 | 15% | 10% | Tailored Policies | Chubb |
 | #10 | 12% | 7% | Add-on Coverages | Markel |
It highlights the essential factors to consider when choosing insurance coverage customized for the specific requirements of home-based entrepreneurs.
See which companies have the cheapest rates for you by entering your ZIP code in our free comparison tool above.
- State Farm offering rates starting at $20/month
- Comprehensive insurance solutions designed for home-based businesses
- Tailored coverage for home-based businesses, ensuring protection against risks
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#1 – State Farm: Top Overall Pick
Pros
- Multi-Policy Discount: State Farm insurance review & ratings mention a generous 10% discount for bundling home-based business insurance with other policies.
- Home-Based Business Discount: A 7% discount specific to home-based businesses, providing additional savings.
- Reputation: State Farm is a well-established and reputable insurance provider with a strong financial standing.
Cons
- Premiums: While offering discounts, State Farm’s base premiums might be higher compared to some competitors.
- Coverage Limitations: Specific coverage limitations may exist, and additional add-ons may be required for comprehensive protection.
#2 – Progressive: Best for Safe-Driving Discounts
Pros
- Safe-Driving Discounts: Offers a 12% discount for maintaining safe driving records, encouraging responsible behavior.
- Home-Based Business Discount: An 8% discount catering specifically to the insurance needs of home-based businesses.
- Online Tools: Progressive insurance review & ratings highlight the user-friendly online resources offered, simplifying policy management for customers.
Cons
- Rates: While competitive, Progressive’s rates might not be the absolute lowest for all customer profiles.
- Limited Local Presence: May lack the extensive local agent network that some customers prefer.
#3 – Allstate: Best for Maximizing Savings
Pros
- Policy Options: Offers a diverse range of policy options, allowing customization based on specific business needs.
- Home-Based Business Discount: A significant 15% discount tailored for home-based businesses, maximizing savings.
- A+ A.M. Best Rating: Allstate insurance review & ratings showcase an impressive A+ rating from A.M. Best, highlighting its strong financial stability and dependable performance.
Cons
- Premiums: Initial premiums may be higher compared to some competitors.
- Add-on Costs: Additional coverages and endorsements may increase the overall cost.
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#4 – Nationwide: Best for Liability Coverage
Pros
- Cyber-Liability Coverage: Nationwide stands out with a specific focus on cyber-liability coverage, crucial in today’s digital age.
- Home-Based Business Discount: Provides a specialized 7% discount designed specifically for home-based enterprises as part of its Nationwide insurance review & ratings.
- Financial Stability: Nationwide boasts a strong financial standing, ensuring reliability in fulfilling claims.
Cons
- Rates: Initial premiums may be relatively higher compared to some competitors.
- Discount Conditions: Meeting the criteria for certain discounts, like cyber-liability coverage, may be specific and challenging for some businesses.
#5 – Travelers: Best for Customized Protection
Pros
- Tailored Coverage: Known for providing tailored coverage options to meet specific business requirements.
- Home-Based Business Discount: Provides a targeted 6% markdown tailored for home-based enterprises in its Travelers insurance review & ratings.
- Financial Strength: Travelers has a solid financial standing, ensuring stability in claim settlements.
Cons
- Rates: While competitive, Travelers’ rates might not be the absolute lowest for all customer profiles.
- Discount Conditions: Meeting the criteria for certain discounts may be challenging for some customers.
#6 – Farmers: Best for Personalized Service
Pros
- Local Agents: Excels in its dedication to local agents, offering face-to-face assistance and tailored customer care, setting itself apart in the Farmers insurance review & ratings.
- Home-Based Business Discount: Offers a 5% discount specifically for home-based businesses.
- Policy Options: Provides a range of policy options to cater to different business needs.
Cons
- Rates: Initial premiums may be relatively higher compared to some competitors.
- Online Experience: The online interface may not be as advanced or user-friendly as some competitors.
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#7 – Liberty Mutual: Best for Payments Flexibility
Pros
- Payment Options: Liberty Mutual offers flexibility with various payment options.
- Home-Based Business Discount: Get an 8% discount specifically designed for home-based businesses through Liberty Mutual insurance review & ratings.
- Financial Strength: Holds a strong financial position, ensuring the ability to fulfill claims.
Cons
- Rates: Initial premiums may be relatively higher compared to some competitors.
- Discount Conditions: Meeting the criteria for certain discounts may be specific and challenging for some businesses.
#8 – The Hartford: Best for Industry-Specific Coverages
Pros
- Industry-Specific Coverages: Stands out with a focus on industry-specific coverages, catering to specialized business needs.
- Multi-Policy Discount: The Hartford insurance review & ratings reflect a notable 14% markdown when bundling home business insurance alongside additional policies.
- Home-Based Business Discount: Provides a 9% discount specifically tailored for home-based businesses.
Cons
- Rates: Initial premiums may be relatively higher compared to some competitors.
- Discount Conditions: Meeting the criteria for certain discounts may be specific and challenging for some businesses.
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#9 – Chubb: Best for Precise Protection
Pros
- Tailored Policies: Known for providing highly tailored insurance policies to meet specific business needs.
- Home-Based Business Discount: Offers a significant 10% discount specifically for home-based businesses.
- Financial Strength: The Chubb insurance review & ratings highlight the company’s robust financial position, guaranteeing stability when it comes to processing claims.
Cons
- Rates: Initial premiums may be higher compared to some competitors.
- Discount Conditions: Meeting the criteria for certain discounts may be specific and challenging for some businesses.
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#10 – Markel: Best for Business Security
Pros
- Add-on Coverages: Markel stands out with a focus on add-on coverages, allowing businesses to customize their policies.
- Home-Based Business Discount: Offers a 7% discount specifically for home-based businesses.
- Financial Stability: Markel American review & ratings highlight the firm’s robust financial position, guaranteeing its capacity to meet claim obligations.
Cons
- Rates: Initial premiums may be relatively higher compared to some competitors.
- Discount Conditions: Meeting the criteria for certain discounts may be specific and challenging for some businesses.
Business Insurance for Home-Based Businesses: Evaluating Risks and Coverage Needs
When it comes to home-based businesses, it’s essential to realize that insurance isn’t one-size-fits-all. Each business has its own risks and requirements.
Jeff Root Licensed Life Insurance Agent
While some businesses may assume they don’t need insurance, it’s crucial to assess the specific risks associated with your home-based business and determine if insurance coverage is necessary. Here are some key points to consider:
- Variety of Businesses: Home-based businesses span across different industries and can have unique risks and coverage needs.
- Examples of Businesses: Accountants, artists, caterers, cleaning services, dog walkers, freelance writers, personal trainers, translators, and tutors are just a few examples of businesses that should consider obtaining home-based businesses. Check out our ranking of the top providers: Best Business Insurance for Dog Walkers
- Risk Assessment: Evaluate the specific risks associated with your business activities, such as potential errors, property damage, injuries to clients or employees, liability claims, or copyright infringements.
- Protection for Valuables: If your business involves valuable assets like artwork or specialized equipment, insurance can provide coverage against damage, loss, or theft.
- Liability Coverage: Many home-based businesses interact with clients or have employees, making liability coverage crucial in case of accidents, injuries, or legal claims.
- Industry-Specific Needs: Different industries may have specific insurance requirements or risks to consider. For example, catering businesses need coverage for food-related incidents, while personal trainers require coverage for training-related injuries.
Finding the right insurance coverage tailored to your specific needs is crucial. Insurance provides financial protection and peace of mind, ensuring that your business is safeguarded from potential financial setbacks or legal issues.
Business Insurance Monthly Rates for Home-Based Businesses by Coverage Type
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $30 | $60 |
| Chubb | $45 | $75 |
| Farmers | $32 | $62 |
| Liberty Mutual | $35 | $65 |
| Markel | $38 | $68 |
| Nationwide | $22 | $52 |
| Progressive | $20 | $50 |
| State Farm | $25 | $55 |
| The Hartford | $40 | $70 |
| Travelers | $28 | $58 |
For home-based businesses seeking insurance coverage, here are the monthly rates categorized by coverage type from various providers. Minimum coverage rates range from Allstate at $30 to Progressive at $20. For full coverage, prices vary from Allstate’s $60 to Chubb’s $75.
These rates provide valuable insight for home-based business owners, allowing them to assess their insurance options comprehensively and make informed decisions based on their specific coverage requirements and budget constraints.
Navigating Coverage Options: Essential Insurance for Home-Based Businesses
When it comes to coverage options for home-based businesses, a business owners policy (BOP) is often a recommended choice. A BOP bundles together three essential coverage types:
- General Liability Insurance: Covers accidental injuries and property damage caused by your business operations, including legal fees, judgments, and settlements.
- Commercial Property Insurance: Protects your business property from theft, loss, or damage caused by covered events, such as fires.
- Business Interruption Insurance: Covers expenses related to temporary business closure due to covered events, such as lost income, payroll, and relocation costs.
Other types of coverage to consider for your home-based business include commercial auto insurance, professional liability insurance, and workers compensation insurance.
By understanding these crucial types of insurance, you can safeguard your business against unforeseen risks and ensure its long-term success. If you have any questions or need further assistance, don’t hesitate to reach out to a qualified insurance professional.
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Case Studies: Mitigating Risks With Business Insurance for Home-Based Businesses
Explore how home-based businesses can mitigate risks through smart insurance decisions. These case studies highlight real-world scenarios where insurance coverage has protected home-based businesses from unforeseen challenges.
- Case Study #1 – Business Owner’s Policy: Jane’s home-based art studio suffered fire damage, but her comprehensive Business Owner’s Policy covered the costs, allowing her to resume her artistic pursuits without financial strain.
- Case Study #2 – Professional Liability Insurance: Mike’s home-based personal training business faced a lawsuit after a client’s injury, but his professional liability insurance shielded him from financial strain, allowing him to continue serving clients stress-free.
- Case Study #3 – General Liability Insurance: Sarah’s catering business is protected by general liability insurance, which covers medical expenses and legal claims when accidents occur, ensuring she can continue her business confidently. For a thorough understanding, refer to our detailed analysis titled “Commercial General Liability (CGL) Insurance: A Complete Guide.”
This thorough assessment is essential in the process of choosing the right insurance solutions, as it directly impacts the long-term prosperity and resilience of a home-based enterprise.
Melanie Musson Published Insurance Expert
By learning from these case studies, entrepreneurs can better understand the importance of insurance coverage and make informed decisions to safeguard their ventures.
Roundup: Securing Your Home-Based Business: Mitigating Risks With Insurance Coverage
Protect your home-based business with tailored insurance coverage, guarding against property damage, injuries, and lawsuits. Explore endorsements or standalone policies for comprehensive protection beyond standard homeowners insurance.
Assess specific needs for coverage, considering a Business Owners Policy (BOP) for larger or specialized businesses, while modest businesses can opt for this option. Collaborate with an agent to guarantee financial security and peace of mind, as Business Owners Policies (BOPs) provide vital coverage.
Searching for more affordable premiums? Insert your ZIP code below to get started on finding the right provider for you and your budget.
Frequently Asked Questions
What is home-based business insurance, and why do I need it?
Home-based business insurance provides additional coverage specifically tailored to the risks associated with running a business from your home. While homeowners insurance may offer some coverage, it’s often not sufficient to protect against all business-related risks. Home-based business insurance offers protection for business property, liability, and other potential business-related losses.
What types of businesses are eligible for home-based business insurance?
Various types of businesses can benefit from home-based business insurance, including but not limited to accountants, artists, caterers, cleaning services, consultants, freelance writers, photographers, tutors, and online retailers. It’s important to assess the specific risks associated with your business and determine if insurance coverage is needed.
Explore our list of leading providers: Best Business Insurance for Business Consultants
Can I add home-based business coverage to my existing homeowners insurance policy?
Yes, many homeowners insurance companies offer endorsements that allow you to add coverage for your home-based business. However, these endorsements may have limitations and may not provide comprehensive coverage for larger or more complex businesses. It’s essential to review your existing policy and discuss your business needs with your insurance provider or agent.
Enter your ZIP code below to compare rates from the top providers near you.
What is the best insurance for a home based business?
If you’re running a home-based business, one of the best ways to get coverage is with a business owners policy (BOP). A BOP bundles together three important coverage types: general liability insurance, commercial property insurance and business interruption insurance.
What insurance is most important for a business?
General liability insurance, also known as business or commercial liability insurance, is essential coverage for various claims, including bodily injury, property damage, personal or advertising injury, medical payments, products-completed operations, and damages to premises rented to you.
What is the most common home insurance coverage?
The most common type of homeowners insurance policy is the standard HO-3 Special Form policy. HO-5 policies offer the broadest coverage of all policy types. Open peril coverage means losses are covered unless specifically excluded, while named peril coverage means only named loss types are covered.
For a thorough understanding, refer to our detailed analysis titled “What is a peril stated in my homeowners insurance policy?”
What does general insurance cover?
General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
Explore our comprehensive resource, Health Insurance: A Complete Guide, to gain further insights.
What type of insurance should you choose?
Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Employer coverage is often the best option, but if that is unavailable, obtain quotes from several providers as many provide discounts if you purchase more than one type of coverage.
What is insurance as used in business?
A cover by business insurance will guard businesses against losses due to events that may happen during the regular course of business. There are many different types of insurance for businesses. It includes coverage for property damage, legal battles and employee-oriented risks.
You can find the cheapest insurance coverage tailored to your needs by entering your ZIP code below.
What is market renters insurance?
Market renters insurance is a type of insurance policy designed to protect tenants who rent their homes in the market, providing coverage for their personal belongings, liability, and additional living expenses in case of covered perils.
To enhance your understanding, explore our comprehensive resource on car insurance titled “Liability Insurance: A Complete Guide.”
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.