Do I Need Special Insurance for My Side Hustle or Home-Based Business?

Written By Brock Malinowski

Working from home is more common than ever—and for many, that includes running a side hustle or small business. Whether you’re baking custom cakes, freelancing online, or selling handmade crafts, it’s important to understand that your homeowners policy likely doesn't cover your business activities. In this post, we’ll explore what types of insurance may be needed to protect your side gig.

Why Your Homeowners Policy Isn’t Enough

Homeowners insurance is designed to protect your personal property and liability—not your business equipment, clients, or income. That means if you're storing inventory in your basement, meeting clients at your kitchen table, or shipping products out of your garage, you could be exposed to risks your standard policy won’t cover.

Here’s where many people run into trouble:

  • A fire damages your baking equipment—but it’s business property, not personal.

  • A client trips and falls on your porch during a business meeting—your liability coverage may not apply.

  • You get sued over your freelance work—no professional liability coverage in your home policy.

Common Side Hustles That May Need Additional Insurance

You may need business-related insurance coverage if you:

  • Sell products online (Etsy, eBay, Amazon)

  • Provide freelance services (design, consulting, copywriting)

  • Offer in-home services (baking, pet grooming, daycare)

  • Operate a home office with business equipment

  • Have clients or deliveries come to your home

  • Store inventory or tools at your residence

Even a “small” business can create big risks.

Types of Insurance to Consider for Home-Based Businesses

Let’s look at common insurance options to protect your side hustle:

1. Home-Based Business Endorsement

This is an add-on to your existing homeowners policy. It can cover:

  • Limited business property (equipment, tools, supplies)

  • Certain liability claims related to business activity

Best for: Very small, low-risk businesses with minimal equipment or client interaction.

2. In-Home Business Policy

A step up from a simple endorsement, this policy offers:

  • Increased business property limits

  • Liability coverage for client visits

  • Business interruption coverage for income loss

Best for: Small-scale operations with some in-person activity or moderate inventory.

3. Commercial Business Insurance

This is a full-scale business insurance policy and may include:

  • General liability for bodily injury or property damage

  • Business property for equipment and inventory

  • Professional liability for service-related claims

  • Commercial auto if you use your vehicle for business purposes

Best for: Larger side hustles, high-risk operations, or anyone earning a significant income through business activities.

4. Product Liability Insurance

If you make and sell products—like baked goods, candles, or cosmetics—you may be held responsible if someone is injured or experiences a reaction. Product liability coverage protects you from lawsuits related to:

  • Allergic reactions

  • Burns or cuts from defective products

  • Contamination claims

5. Professional Liability Insurance

Also known as errors & omissions insurance, this is crucial if you:

  • Offer advice, designs, or consulting

  • Could be sued for negligence or mistakes

  • Work in industries like marketing, IT, accounting, or legal support

6. Cyber Liability Insurance

If your side hustle involves:

  • Collecting customer data

  • Accepting online payments

  • Running a website or email list

Then cyber coverage can help protect you against hacking, phishing attacks, and customer data breaches.

What About Your Vehicle?

If you use your car to deliver products or meet with clients—even just occasionally—your personal auto insurance might not cover accidents that happen while working. In those cases, you may need commercial auto insurance or a business-use endorsement.

How Hixson & Malinowski Insurance Can Help

As an independent insurance agency in Parma, we work with side hustlers, freelancers, and small business owners every day. At Hixson & Malinowski Insurance, we take the time to understand your unique situation and match you with coverage that fits your needs and budget.

We’ll help you:

  • Determine if your homeowners policy covers any business activity

  • Recommend the right endorsement or separate policy

  • Find affordable options from multiple top-rated carriers

  • Offer personalized advice for your industry

Your side hustle might start small, but that doesn’t mean it’s risk-free. Whether you’re selling, creating, or consulting, having the right insurance coverage protects both your business and your personal assets. Let Hixson & Malinowski Insurance help you safeguard what you’re building—so you can focus on growing it.

Brock Malinowski
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