Individuals that operate their own businesses need liability insurance in addition to a home based business or business owner’s policy. This protects you against financial losses from lawsuits filed against you by your clients or vendors.
Business owners are expected to have extensive knowledge or training in their particular area of expertise. They are expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to use the degree of skill that is expected of them, they can be held responsible in a court of law for any harm that is caused to another person or business. When liability is limited to acts of negligence, business liability insurance may also be called "errors and omissions" liability. Business liability insurance is considered to be specialty coverage. Business liability coverage is not provided under homeowner’s endorsements, home-based business policies or business owner’s policies (BOPs).