Money·2 min read

Yes, Your Side Hustle Needs Insurance

accessibility, woman packing inventory
Design: theSkimm | Photo: iStock
July 25, 2022

It’s common for businesses to start as a home-based side hustle. Looking at you, Google.So if your side hustle is growing, it’s a good idea to get insurance before it takes off. 

Why do I need home-based business insurance?

Because your side hustle is still a business, which means you face the same risks as larger corporations. Think: Property damage and client disputes. Yikes. A good home-based business insurance policy can protect you from taking major losses. 

But isn’t this covered with homeowners’ insurance?

Not always. Especially if you operate your business from a separate structure on your property. Read: she-shed.But you can add home-based business insurance to your homeowners’ insurance policy as a rider. Just to make sure everything’s covered.  

What does home-based business insurance cover?

That varies depending on your policy, but here are common options.

Business property insurance… 

Protects your business equipment in the case of theft or property damage. Usually a good idea for side hustlers with equipment and inventory that would be really expensive to replace.

Liability insurance…

Protects your business from being liable when another person is injured.Psst...homeowners’ insurance won’t generally cover injuries or property damage if the incident is related to business. Think: Do clients frequently meet you at home?

Product liability insurance…

This one is for the side hustlers who sell physical products. It provides coverage for the times your product causes injury to a customer.

PS: This list isn’t all-inclusive, so it’s always a good idea to review your options with an insurance professional.

How much does home-based business insurance cost?

This varies, too. Because it depends on the details of your policy. But home-based business insurance doesn’t usually exceed $300 per year.


Owning a small business can come with major risks, even when you’re side hustling from home. A great way to manage those risks is through home-based insurance. The good news: in most cases, you can just add it to your homeowners’ insurance policy.

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