Home business liability insurance is usually not the first thing at the top of anyone’s list when starting a new business venture. With so many other expenses to worry about - office rental, new equipment, advertising - liability insurance can sometimes fall by the wayside. But it's just this type of insurance that can mean the life and death of a home business if the unexpected should happen. According to insurance giant State Farm, home business insurance is one of the fastest growing sectors of the commercial insurance market.

Also referred to as Errors and Omissions insurance, home business liability insurance (also called self employed liability insurance) is not mandatory like other types of insurance, such as Workers Compensation. Some small business owners may think that it’s not worth the extra expenditure.

However, in many ways, home business liability insurance is one of the most important pieces of protection that can purchased for any home business. This type of policy protects both personal assets and business assets from litigation brought about because of any mistakes made during the course of a home based business.

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