What type of insurance would one typically need for a home-based business?

For a home-based business, business liability insurance is crucial because it protects the business owner from claims related to bodily injury, property damage, and personal injury that can occur as a result of business activities. This type of insurance is specifically designed to cover risks associated with operating a business, which standard homeowners insurance typically does not cover adequately. Homeowners insurance is primarily focused on protecting personal property and personal liability related to the home, while renter's insurance is tailored for tenants and also does not adequately address business-related risks. Auto insurance, meanwhile, is meant for vehicles and is unrelated to home-based business operations. Thus, business liability insurance provides the necessary coverage to ensure that specific risks associated with running a business from the home are addressed.