NEXT earned our top spot for the best small business insurer for home-based companies due to its affordability and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, Simply Business and Hiscox.
Best Home-based Business Insurance
Updated: July 11, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT is the best business insurance company for home-based firms because it offers the greatest balance of affordability and customer service.
NEXT offers the best combination of affordability and customer service for home-based businesses, with competitive rates across multiple coverage types.
To shop for business insurance for your home-based business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Home-based Companies
| NEXT Insurance | 96 | 98 | 94 |
| The Hartford | 94 | 94 | 91 |
| Simply Business | 92 | 93 | 83 |
| biBERK | 88 | 87 | 91 |
| Nationwide | 88 | 84 | 91 |
| Hiscox | 88 | 90 | 87 |
| Progressive Commercial | 87 | 88 | 81 |
| Chubb | 85 | 80 | 87 |
| Thimble | 85 | 86 | 81 |
| Coverdash | 85 | 80 | 83 |
*All scores were based on a home-based business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. NEXT
pros
Fast digital quoting and onboarding
High customer satisfaction score
Competitive general liability pricing
cons
Limited coverage for high-risk home businesses
COMPANY HIGHLIGHTS
NEXT is our top pick for home-based companies thanks to its excellent affordability and strong customer service rating. It earned a 96 overall score in our rankings and offers competitive monthly prices on key policies, with competitive workers' comp rates.
NEXT is especially popular with solo entrepreneurs and microbusinesses because of its easy-to-use online tools.
With a 4.7‑out‑of‑5 customer rating, it's used by thousands of small business owners. However, coverage options may be limited for home businesses with unusual or higher-risk operations.
2. The Hartford
pros
Cheapest professional liability and BOP
Strong overall affordability
High financial stability
cons
Quoting process can be slower online
COMPANY HIGHLIGHTS
The Hartford is a strong choice for home-based business owners who want dependable insurance coverage. It offers the lowest rates for both professional liability and BOP insurance among the providers we reviewed.
It is backed by an A+ from AM Best, making it one of the most financially secure insurers available. Its flexible policy options and solid reputation make it a great fit for consultants, freelancers, and home-based professionals. While its website is functional, some users may prefer a faster digital experience.
3. Simply Business
pros
Cheapest general liability rates
Flexible coverage from multiple carriers
Easy online comparison tools
cons
Customer service is less consistent
COMPANY HIGHLIGHTS
Simply Business is ideal for home-based businesses looking to compare multiple quotes quickly. It offers the lowest general liability rates at just $18 per month, according to our analysis. This insurance marketplace connects you with top-rated carriers and lets you customize your policy selection. This makes it especially useful for newer businesses still figuring out their coverage needs. However, some users report variability in customer support depending on the carrier selected.
Cheapest Business Insurance for Home-based Firms
Based on our study of business insurance pricing, NEXT offers competitive rates across multiple coverage types, ranking among the top providers for affordability. However, this applies only to home-based companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Home-based Companies
With an average monthly rate of $18, Simply Business offers the lowest-cost general liability insurance for home-based companies. Even so, consider getting quotes from the next-most-affordable insurers: The Hartford and Hiscox.
| Simply Business | $18 | $211 |
| The Hartford | $19 | $227 |
| Hiscox | $21 | $247 |
| Progressive Commercial | $23 | $274 |
| Thimble | $24 | $294 |
| biBERK | $25 | $298 |
| Nationwide | $25 | $305 |
| Chubb | $28 | $337 |
| Coverdash | $34 | $406 |
Cheapest Workers' Comp Insurance for Home-based Companies
For home-based businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $4 per month or $52 yearly.
Still, it's worth checking quotes from other low-cost insurers like biBERK, Coverdash, Hiscox and Nationwide.
| Thimble | $4 | $52 |
| biBERK | $5 | $61 |
| Coverdash | $5 | $59 |
| Hiscox | $5 | $58 |
| Nationwide | $5 | $65 |
| NEXT Insurance | $5 | $60 |
| Progressive Commercial | $5 | $56 |
| Simply Business | $5 | $57 |
| The Hartford | $5 | $58 |
| Chubb | $6 | $69 |
Cheapest Professional Liability Insurance for Home-based Companies
The Hartford offers the most affordable professional liability insurance options for home-based companies, with low average monthly rates of $26. You may also want to compare prices from other low-cost providers like NEXT Insurance, Progressive Commercial, and Thimble.
| The Hartford | $26 | $311 |
| NEXT Insurance | $27 | $326 |
| Progressive Commercial | $28 | $333 |
| Hiscox | $29 | $348 |
| Simply Business | $29 | $347 |
| Thimble | $29 | $348 |
| biBERK | $30 | $361 |
| Coverdash | $30 | $354 |
| Nationwide | $32 | $379 |
| Chubb | $34 | $409 |
Cheapest BOP Insurance for Home-based Companies
For those seeking combined general liability and property insurance in a business owner’s policy (BOP), The Hartford offers the lowest average annual rate at $292. That’s a savings of roughly $25 annually compared to Simply Business, the second most affordable option.
| The Hartford | $24 | $292 |
| Simply Business | $26 | $317 |
| Hiscox | $31 | $370 |
| biBERK | $32 | $385 |
| Progressive Commercial | $34 | $407 |
| Nationwide | $38 | $458 |
| Thimble | $38 | $457 |
| Chubb | $42 | $505 |
| Coverdash | $49 | $588 |
What Type of Coverage Do You Need for a Home-based Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED HOME-BASED BUSINESS COVERAGE
General liability insurance is strongly recommended for home-based companies because it covers common risks like bodily injury, property damage, and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. This works well for home-based businesses with commercial contracts or higher-risk operations like technical consulting, legal services or custom manufacturing.
Coverage Recommendations by Home-based Company Type
We've broken down risk considerations and coverage recommendations by home-based business type, ordered from highest to lowest risk for claims frequency. This list helps business owners identify their insurance needs based on the type of service they offer, ensuring those with higher risks consider more protective coverage options.
Home-Based Business Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
Cottage Food/Baked Goods Production | General Liability (high limits), Product Liability, Commercial Auto, Business Property, Workers’ Comp | Foodborne illness, kitchen fire damage, delivery accidents | Illness from contaminated goods, fire damage to shared property, customer injury from packaging |
Home Daycare | General Liability, Abuse & Molestation Coverage, Workers’ Comp, Professional Liability, Business Property | Child injury, property damage, allegations of misconduct | Injury liability suits, licensing violations, parental disputes over care quality |
Pet Grooming or Boarding | General Liability, Animal Bailee, Business Property, Workers’ Comp | Pet injuries during grooming, bites or scratches, property damage | Injury lawsuits from pet owners, property damage claims, licensing noncompliance |
Handmade Products (e.g., candles, soaps) | General Liability, Product Liability, Business Property, Tools & Equipment | Fire hazards, allergic reactions, product defects | Burn/injury lawsuits, allergic reaction claims, intellectual property disputes |
In-Home Tutoring or Coaching | General Liability, Professional Liability, Cyber Liability (if remote), Workers’ Comp | Student injury, claims of negligence, online session issues | Educational malpractice claims, data breaches, injury during sessions |
Freelance Tech/Design/Marketing | General Liability, Professional Liability, Cyber Liability, Business Property | Client disputes, tech outages, data breaches | Missed deadlines, IP infringement claims, client loss due to error |
E-commerce (Retail/Resale) | General Liability, Product Liability, Business Property, Cyber Liability | Defective goods, inventory damage, cyber fraud | Customer refund disputes, product defect lawsuits, data breach claims |
Virtual Assistant/Admin Support | Professional Liability, Cyber Liability, Business Property | Data loss, confidentiality breach, service delivery issues | Breach of contract, missed deadlines, accidental sharing of private info |
Home-Based Consulting | General Liability, Professional Liability, Business Property | Bad advice claims, client disputes, minor property damage | Negligence lawsuits, breach of contract, reputational harm |
Content Creation/Influencing | General Liability, Business Property, Professional Liability, Cyber Liability | Brand disputes, filming-related accidents, copyright issues | Defamation claims, copyright disputes, equipment damage liability |
How to Get the Best Cheap Business Insurance for Your Home-based Company
Here's a step-by-step method for finding the best and cheapest business insurance for your home-based company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To ensure you get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, so you're covered for what you actually need, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The best way to find the best deal is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Home-based Business's Liability Risk
Reducing risk helps keep your home-based business safe and your insurance costs down. We've organized practical risk-reduction strategies by business type and risk level to help you lower your liability risk.
Home-Based Business Risk Type | Included Types of Home-Based Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Cottage food production, home daycare, pet grooming | Follow local licensing laws, maintain food/pet care certifications, document safety procedures, install proper ventilation, use commercial-grade equipment, implement injury response protocols |
Moderately High | Handmade product makers, in-home tutoring, e-commerce sellers | Use safety-tested materials, conduct patch/allergy tests, carry inventory insurance, document all student sessions, secure digital platforms, screen client interactions |
Moderate | Freelancers, consultants, content creators | Use signed contracts and disclaimers, maintain clear client communication, encrypt digital files, secure work devices, invest in ergonomic workspaces |
Moderately Low | Virtual assistants, administrative support | Use encrypted communication tools, document client instructions, automate data backup, use time-tracking software, clearly define scope of services |
Lowest | Part-time or hobby-based businesses | Maintain home liability add-ons, keep personal and business finances separate, use inventory logs, track receipts, follow informal safety standards |
Best Insurance for Home-based Business: Bottom Line
NEXT Insurance is the best insurer for home-based business insurance, while it also offers the cheapest option overall. We also recommend getting quotes from The Hartford, Simply Business and biBERK. For the best deal, talk to agents, research providers and pricing and compare multiple quotes side by side.
Home-based Business Insurance: FAQ
Here are answers to common questions about home-based business insurance.
Who offers the best home-based business insurance overall?
NEXT offers the best business insurance for home-based companies with a high customer service rating and an impressive MoneyGeek score of 96 out of 100. The Hartford is close behind, offering competitive rates and an overall score of 94.
Who has the cheapest business insurance for home-based companies?
Here are the cheapest business insurance companies for home-based businesses by coverage type:
- Cheapest general liability insurance: Simply Business at $18 per month
- Cheapest workers' comp insurance: Thimble at $4 per month
- Cheapest professional liability insurance: The Hartford at $26 per month
- Cheapest BOP insurance: The Hartford at $24 per month
What business insurance is required for home-based organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for home-based businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does home-based business insurance cost?
Business insurance costs for home-based companies vary depending on your coverage needs. Below are average monthly costs for common small business policies:
- General liability: $26 per month
- Workers comp: $5 per month
- Professional liability: $29 per month
- BOP insurance: $34 per month
How We Chose the Best Home-based Business Insurance
We selected the best business insurer for home-based companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Home-based business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.
- NEXT. "Customer Reviews." Accessed June 16, 2025.