Why do I need home-based business insurance?

Working from home comes with countless perks. You get to skip the commute, retrieve snacks from your own fridge, and spend your day in comfy clothes alongside your beloved possessions and furry friends.

You may assume that another benefit is having less risk than entrepreneurs who must travel to job sites. After all, your interactions with others are more limited.

Like any other small business owner, however, you take on risks related to your venture — even while working from your couch. That’s why any “homepreneur” should invest in home-based business insurance.

If clients or vendors visit your home business location, there is a risk (albeit small) that they could suffer various injuries or damages as a result of an accident. Should a third party claim that your business caused them to incur an injury or to experience property damage, you might need protection from the associated financial costs.

“Wait! Doesn’t my homeowner’s or renter’s insurance cover that?” you might ask. The short answer is maybe.

When it comes to your long-term financial health, maybe protecting your assets doesn’t quite cut it. That’s why most home-based business owners need both professional liability insurance and general liability insurance.

Next, we’ll show you how to protect yourself against claims that could put you out of work, so that you can focus on the tasks at hand.

What does Home-Based Business Insurance cover?

General liability and professional liability insurance arranged by Thimble help to provide the investigation, defense of claims and payment for damages as a result of the following kinds of incidents:

3rd party bodily injury
Should a client or other non-employee third party suffer an injury while they’re in your home on business, they could claim you are liable. When you’re at fault for an accident, directly or indirectly, your general liability insurance could help protect you from the financial fallout of a bodily injury claim.

3rd party property damage
Should you accidentally damage a third party’s business property (say, a laptop), they could allege you are liable for the costs to fix or replace the item. Once again, general liability insurance could help protect you from the expenses incurred because of this incident.

Customer property protection
Some insurers exclude damage to customer property while it is in your custody or control under their policies. If you’re a home-based tailor hemming a client’s wedding dress, and the garment is stolen or accidentally damaged in a fire on your premises, Thimble’s Customer Property Protection could help cover the cost to replace it. While some insurers would exclude customer property coverage from their policies, we bundle it with general liability insurance for all durations.

Errors & Omissions
If your home-based business relies upon providing your clients with your expertise and professional advice, then there’s always the risk that someone could file a claim against you. If a client states that your advice (or lack thereof) caused them a financial loss, you could be held liable. This is where professional liability insurance can help.

Who does Home-Based Business Insurance cover?

Home-Based Business Insurance via Thimble is designed to work for various types of businesses, including:

Craft businesses:

• Candle makers
• Soapmakers
• Crafters
• Home bakers
• Pottery makers

Freelance & consultants:

• Photographers
• Freelancers
• Marketing consultants
• Tutors
• Personal trainers (in-person or virtual)

Event Vendors:

• Florists
• Caterers
• Wedding planners
• DJs
• Many other entertainers

Does Thimble’s Home-Based Business Insurance cover damage to my equipment?

Yes and no. General liability insurance is designed to provide coverage for claims resulting from client and third-party property damage or non-employee bodily injury. As such, you’d need two separate policies – one to protect your gear and one to protect your business against third party claims. Insurance can be complex!

However, at Thimble, we know most business owners don’t have the time or energy to worry about multiple policies to cover themselves and their equipment. That’s why, when you purchase monthly general liability coverage with Thimble, Business Equipment Protection is an option to bundle into the plan.

You can choose a limit of $1,000 or $2,500, depending on how much coverage you need. Thimble also saves you time since you don’t need to schedule your equipment for items under $2,500 in value under this coverage. Thanks to blanket coverage, all the tools and equipment you use are covered up to the limit of insurance in each loss.

How much does Home-Based Business Insurance cost?

At Thimble, we instantly calculate the cost of your coverage based on the following factors:

Business risk profile – Your industry, ZIP code, and crew size all play a role in the likelihood that you’ll file a claim.

Coverage limits – More coverage costs slightly more money.

Coverage term – Thimble’s on-demand insurance lets you choose from hourly, daily, or monthly insurance coverage to meet your specific needs.

Ready to find out how much your insurance will cost?

Get a Quote

How quickly can I get a Certificate of Insurance?

In under a minute.

Enter a few quick details about your business to receive an instant quote. If it looks good, purchase with a click. Your policy and Certificates of Insurance (COI) will appear in your inbox and on the Thimble mobile app. Need another COI to show a client? Not a problem! With Thimble you can request as many as you need at no additional cost.

What are the Home-Based Business Insurance policy limits?

Thimble lets you choose the coverage you need. Our limits come in two different options: $1 million or $2 million. Policyholders choose their coverage limit depending on how much coverage they want. For a small difference in your premium, a $2 million coverage limit might be the optimal decision.

Are workplace injuries of my staff covered?

No, they’re not. Your homeowner’s or renter’s insurance policy probably won’t cover them, either.

If you employ staff or crew, you may be legally required to take out workers’ compensation insurance. This kind of policy can provide coverage for any illness or injuries your staff sustains as a result of working for you.

How do I get Home-Based Business Insurance with Thimble?

Ready to buy insurance?

Click here to get a quote (or use the Thimble mobile app). Set your coverage limits and choose your coverage length, then purchase with a click!

You’ll receive your coverage and COI immediately, leaving you plenty of time to grab another snack from the fridge.

Get a Quote

Have questions? Visit our FAQs