Home-based business insurance averages $27 monthly, with costs ranging from $9 to $41 based on coverage needs and your location.
Get matched with cheap home-based business insurance below.
Updated: October 17, 2025
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Home-based business insurance costs range from $105 to $492 annually on average, depending on coverage type, state and sub-industry.
Your home-based insurance premiums depend on location, claims history, services you provide and your employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable home-based business insurance costs.
We found average business insurance costs for home-based companies for commonly needed coverage are as follows:
| BOP | $35 | $420 |
| General Liability | $24 | $287 |
| Professional Liability (E&O) | $37 | $445 |
| Workers' Comp | $10 | $121 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your home-based business insurance cost for general liability insurance varies dramatically by location. Maine residents pay just $21 monthly compared to the $24 national average, while New Yorkers have $28 monthly premiums for the same coverage.
| Alabama | $23 | $281 |
| Alaska | $23 | $272 |
| Arizona | $23 | $275 |
| Arkansas | $23 | $275 |
| California | $27 | $319 |
| Colorado | $24 | $284 |
| Connecticut | $26 | $311 |
| Delaware | $26 | $308 |
| Florida | $26 | $310 |
| Georgia | $24 | $291 |
| Hawaii | $26 | $307 |
| Idaho | $23 | $272 |
| Illinois | $26 | $315 |
| Indiana | $23 | $279 |
| Iowa | $23 | $273 |
| Kansas | $23 | $278 |
| Kentucky | $22 | $270 |
| Louisiana | $27 | $320 |
| Maine | $21 | $248 |
| Maryland | $23 | $273 |
| Massachusetts | $25 | $301 |
| Michigan | $23 | $272 |
| Minnesota | $22 | $269 |
| Mississippi | $24 | $288 |
| Missouri | $24 | $283 |
| Montana | $24 | $285 |
| Nebraska | $23 | $271 |
| Nevada | $27 | $329 |
| New Hampshire | $24 | $285 |
| New Jersey | $27 | $325 |
| New Mexico | $24 | $288 |
| New York | $28 | $333 |
| North Carolina | $21 | $248 |
| North Dakota | $21 | $249 |
| Ohio | $22 | $266 |
| Oklahoma | $22 | $268 |
| Oregon | $22 | $266 |
| Pennsylvania | $28 | $331 |
| Rhode Island | $26 | $315 |
| South Carolina | $25 | $295 |
| South Dakota | $22 | $268 |
| Tennessee | $23 | $279 |
| Texas | $24 | $289 |
| Utah | $23 | $276 |
| Vermont | $23 | $275 |
| Virginia | $22 | $261 |
| Washington | $27 | $326 |
| West Virginia | $25 | $301 |
| Wisconsin | $23 | $281 |
| Wyoming | $22 | $265 |
Note: We based these general liability rates on home-based businesses with two employees across different states. Your rates will vary based on your location, claims history and the services you provide.
Your home-based business will have different workers' compensation insurance rates depending on your state. You'll pay as little as $9 monthly in Maine or as much as $12 in New York. State regulations and claim histories drive these pricing differences across the country.
| Alabama | $10 |
| Alaska | $9 |
| Arizona | $10 |
| Arkansas | $10 |
| California | $11 |
| Colorado | $10 |
| Connecticut | $11 |
| Delaware | $11 |
| Florida | $11 |
| Georgia | $10 |
| Hawaii | $11 |
| Idaho | $9 |
| Illinois | $11 |
| Indiana | $10 |
| Iowa | $10 |
| Kansas | $10 |
| Kentucky | $9 |
| Louisiana | $11 |
| Maine | $9 |
| Maryland | $10 |
| Massachusetts | $11 |
| Michigan | $9 |
| Minnesota | $9 |
| Mississippi | $10 |
| Missouri | $10 |
| Montana | $10 |
| Nebraska | $9 |
| Nevada | $11 |
| New Hampshire | $10 |
| New Jersey | $11 |
| New Mexico | $10 |
| New York | $12 |
| North Carolina | $9 |
| Oklahoma | $9 |
| Oregon | $9 |
| Pennsylvania | $12 |
| Rhode Island | $11 |
| South Carolina | $10 |
| South Dakota | $9 |
| Tennessee | $10 |
| Texas | $10 |
| Utah | $10 |
| Vermont | $10 |
| Virginia | $9 |
| West Virginia | $11 |
| Wisconsin | $10 |
Note: We based these workers' comp rates on home-based businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost will vary by state. This coverage, also called errors and omissions insurance (E&O), averages $37 monthly nationwide. You'll find the lowest E&O insurance cost in North Carolina at $32 monthly, while New Jersey, New York and Pennsylvania tie for the highest at $43 monthly.
| Alabama | $37 |
| Alaska | $33 |
| Arizona | $36 |
| Arkansas | $37 |
| California | $41 |
| Colorado | $36 |
| Connecticut | $41 |
| Delaware | $40 |
| Florida | $40 |
| Georgia | $38 |
| Hawaii | $38 |
| Idaho | $36 |
| Illinois | $41 |
| Indiana | $36 |
| Iowa | $35 |
| Kansas | $36 |
| Kentucky | $34 |
| Louisiana | $42 |
| Maine | $32 |
| Maryland | $35 |
| Massachusetts | $39 |
| Michigan | $35 |
| Minnesota | $35 |
| Mississippi | $37 |
| Missouri | $36 |
| Montana | $37 |
| Nebraska | $35 |
| Nevada | $42 |
| New Hampshire | $37 |
| New Jersey | $43 |
| New Mexico | $37 |
| New York | $43 |
| North Carolina | $32 |
| North Dakota | $32 |
| Ohio | $34 |
| Oklahoma | $35 |
| Oregon | $34 |
| Pennsylvania | $43 |
| Rhode Island | $40 |
| South Carolina | $38 |
| South Dakota | $35 |
| Tennessee | $36 |
| Texas | $39 |
| Utah | $35 |
| Vermont | $36 |
| Virginia | $34 |
| Washington | $42 |
| West Virginia | $39 |
| Wisconsin | $37 |
| Wyoming | $35 |
Note: We based these professional liability rates on home-based businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Home-based business insurance costs depend heavily on your state, with BOP insurance cost differences spanning from $30 monthly in North Carolina to $41 in New York for the same coverage. This $11 monthly gap translates to $132 more annually for New York entrepreneurs compared to North Carolina business owners.
| Alabama | $35 |
| Alaska | $33 |
| Arizona | $34 |
| Arkansas | $34 |
| California | $39 |
| Colorado | $34 |
| Connecticut | $38 |
| Delaware | $38 |
| Florida | $38 |
| Georgia | $35 |
| Hawaii | $36 |
| Idaho | $33 |
| Illinois | $39 |
| Indiana | $35 |
| Iowa | $34 |
| Kansas | $33 |
| Kentucky | $33 |
| Louisiana | $39 |
| Maine | $31 |
| Maryland | $34 |
| Massachusetts | $38 |
| Michigan | $33 |
| Minnesota | $33 |
| Mississippi | $36 |
| Missouri | $35 |
| Montana | $35 |
| Nebraska | $34 |
| Nevada | $40 |
| New Hampshire | $35 |
| New Jersey | $39 |
| New Mexico | $35 |
| New York | $41 |
| North Carolina | $30 |
| North Dakota | $30 |
| Ohio | $31 |
| Oklahoma | $32 |
| Oregon | $32 |
| Pennsylvania | $40 |
| Rhode Island | $38 |
| South Carolina | $35 |
| South Dakota | $33 |
| Tennessee | $34 |
| Texas | $35 |
| Utah | $34 |
| Vermont | $33 |
| Virginia | $31 |
| Washington | $40 |
| West Virginia | $38 |
| Wisconsin | $35 |
| Wyoming | $32 |
Note: We based these BOP rates on home-based businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Home-based business insurance costs vary widely by provider, ranging from $22 monthly with The Hartford to $33 with Coverdash. These price differences reflect each insurer's specific market focus and risk assessment strategies, which shift over time based on profitability and coverage expansion opportunities.
| Chubb | $32 | $379 |
| Coverdash | $33 | $396 |
| Hiscox | $25 | $298 |
| NEXT Insurance | $22 | $270 |
| Nationwide | $29 | $348 |
| Progressive Commercial | $26 | $309 |
| Simply Business | $23 | $273 |
| The Hartford | $22 | $259 |
| Thimble | $28 | $330 |
| biBERK | $27 | $320 |
Home-based business insurance costs depend on multiple factors that insurers review when setting your premium rates:
Your home's address sets baseline rates through neighborhood risk factors and state insurance regulations. Areas with higher property crime or stricter zoning enforcement around home businesses can push your premiums upward.
Claims from business activities at your residence affect future pricing. Something as simple as a client tripping on your front steps or a product liability issue can raise what you pay down the line.
What you do from home matters more than you'd think. Consulting from a home office carries minimal risk, while running a bakery with commercial ovens or storing inventory for an e-commerce shop creates different exposures.
Hiring anyone to work from your home triggers workers' compensation requirements in most states. Even part-time virtual assistants or contractors may need coverage, depending on how your state classifies them and your working relationship.
How much you earn influences coverage needs and premiums. A side hustle generating $20,000 annually requires less protection than someone running their primary income source from home and clearing six figures.
Choosing between minimum and robust coverage affects your monthly spend. Basic policies might cap business property at $10,000, while comprehensive plans can protect $50,000 or more in equipment and inventory at proportionally higher prices.
Personal credit affects business insurance pricing in most markets. Insurers use credit-based insurance scores to gauge reliability, rewarding strong credit with lower rates and penalizing poor credit with markups.
Lowering the cost of your home-based business insurance starts with comparing providers and making smart coverage choices. Follow our step-by-step guide to find affordable business insurance that fit your needs and strengthen your business’s risk profile over time.
Home-based businesses need separate business insurance since standard homeowners policies exclude commercial activities and provide little to no coverage for business equipment, liability, or income loss.
Essential coverage includes general liability for client injuries at your home office, business property insurance for computers and equipment, and professional liability if you provide services or advice.
Insurance costs for home-based operations vary dramatically based on whether clients visit your location, you store inventory, or you operate purely online without customer traffic. Request quotes from three or four providers, comparing both standalone policies and home business endorsements you can add to your existing homeowners insurance.
Adding a home business endorsement to your homeowners policy costs $200-400 annually for basic coverage, while standalone Business Owner's Policies offer more comprehensive protection at $500-1,500 depending on your business type. Bundling your business and homeowners insurance with the same carrier often provides multi-policy discounts of 10% to 15%. Some insurers offer in-home business policies that seamlessly blend personal and commercial coverage without requiring separate policies.
Higher deductibles of $1,000 to $2,500 on business property coverage can reduce premiums by 20% to 30% if your equipment value is relatively low. Keep general liability deductibles minimal since client injuries or property damage claims can arise even in a home office environment.
Monthly payment plans add 4% to 8% in installment fees that compound quickly even on smaller home business premiums. Annual payment eliminates these charges and may qualify you for a 5% to 8% paid-in-full discount. For a home-based business with $1,200 in annual premiums, this combination could save $100 to $190 yearly that you can reinvest in business development or marketing initiatives.
Review your policy whenever you start meeting clients at home, hire employees or contractors, or increase your equipment or inventory value beyond basic home office needs. Your coverage limits should grow with your revenue, especially if you've transitioned from a side hustle to full-time income.
Home-based business insurance costs between $9 and $41 per month, though your exact rate depends on factors like location, business size and claims history. You can often lower your premium by comparing quotes from several providers, bundling policies, raising your deductible or paying your annual premium upfront.
Home-based business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation costs just $10 monthly but only covers employee injuries. Most home-based businesses require general liability coverage ($24 monthly) for protection against customer injuries and property damage lawsuits.
You'll pay more in these states. General liability in California runs $27 monthly (versus $24 national average), and BOP costs $39 monthly (versus $35 average). New York is similar at $28 and $41, respectively.
Bundling delivers greater savings compared to purchasing individual policies. Insurance companies provide discounts when you package general liability, commercial property and commercial auto coverage through a single provider.
Multiple factors increase premiums: storing valuable inventory, operating dangerous equipment, hosting clients at home, having employees, poor credit history, previous claims and living in high-crime areas.
Higher deductibles reduce monthly premiums but increase out-of-pocket costs during claims. Consider your available cash reserves and anticipated claim frequency when deciding.
Home-based business workers' compensation costs vary by state, spanning from $9 monthly in Maine to $12 monthly in New York.
Yes, BOP insurance is worth it for home-based companies. BOP costs $35 monthly and bundles general liability, commercial property and business interruption coverage. This package deal saves money compared to purchasing individual policies separately, making it a smart choice for home-based businesses.
Shop annually when your policy renews. Comparing quotes from multiple insurers can uncover savings, especially after business changes like adding employees or expanding services.
We collected home-based business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small home-based business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the home-based industry.
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.
