Your insurance checklist after starting a side business
A side business creates new liability exposures that your personal insurance policies almost certainly do not cover.
What changes with your insurance
Starting a side business — even a freelance or home-based one — creates insurance exposures that your personal policies likely do not cover. Homeowners and renters policies exclude business liability and business property losses. Auto insurance excludes commercial use of your vehicle for most side businesses. If you use your car for deliveries, rideshare, or client visits, you need a commercial endorsement or a rideshare policy. A Business Owner's Policy (BOP) combines general liability and business property insurance into one cost-effective package starting around $30-80/month for small home-based businesses.
What you might be overpaying for
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Personal auto policy for business driving
Using your personal auto policy for delivery, rideshare, or client visits is a coverage gap. A commercial endorsement adds $15-40/month and properly covers business use.
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No professional liability coverage for service businesses
If you provide advice, design, IT services, or other professional services, general liability alone is insufficient. Errors and omissions (E&O) coverage protects against claims of professional negligence.
Frequently asked questions
Frequently asked questions
This is an estimate for informational purposes only based on national and state averages. Actual rates vary by insurer and individual circumstances. For an accurate quote, contact a licensed insurance agent.
Relevant calculators
Liability Coverage Calculator
Estimate how much liability coverage your side business needs.
Use calculator →Umbrella Insurance Calculator
Consider an umbrella policy for additional protection above your liability limits.
Use calculator →Disability Insurance Calculator
Protect your income if your side business income becomes your primary income.
Use calculator →