Business

From Side Hustle to Serious: The One Policy Most Solopreneurs Forget

By April Schaffroth • April Schaffroth Farmers Insurance Agency • KNOW North Phoenix, Arizona

Let’s be real, we've all been a one-woman show, running your business from your living room, kitchen counter, or maybe even your backyard hammock. No office, no staff-just you, your laptop, and a strong Wi-Fi connection. If this is the season you are currently in have you thought about General Liability Insurance? 

Why in the world would you need General Liability Insurance?

It’s a fair question—and one I get asked all the time as an insurance agent who specializes in helping women entrepreneurs protect what they’re building. The truth is, even if you're working from home in leggings and running a streamlined solo business, you still face real risks.  General Liability insurance is one of the most important tools in your financial safety kit.

What Is General Liability Insurance, Really?

General Liability insurance (GL) is like your business’s suit of armor. It protects you against third-party claims of bodily injury, property damage, and personal or advertising injury. It can cover legal fees, settlements, and even medical expenses if someone sues you—or threatens to.

Here's the kicker: It doesn’t just apply to traditional brick-and-mortar businesses. It’s for anyone doing business- service providers, consultants, freelancers, and yes, solopreneurs.

Why Would a Home-Based Business Need This?

Great question! Here are just a few real-world scenarios where General Liability could save the day:

  1. Client Meetups Gone Wrong  
    A client visits your home for a meeting and trips over your dog’s toy on the porch. They break a wrist and sue you for medical bills.
  2. Coffee Shop Mishaps  
    You’re giving a presentation at a coworking space or café, and your water bottle spills on someone’s expensive laptop.
  3. Vendor Contracts  
    Some venues or clients require you to carry General Liability to work with them. Without it, you may miss out on valuable opportunities.
  4. Libel or Slander Claims  
    Did your latest podcast ruffle feathers? If someone claims reputational damage, your GLI could step in to protect you.
  5. Product or Service Claims  
    If someone claims your advice or product caused them harm—financial or otherwise—you could be sued.

But Doesn’t My Homeowners Insurance Cover Me?

Short answer: No

Homeowners or renters insurance typically excludes business-related activities. So if your business gear gets stolen or a client gets injured at your home, your personal policy won’t help. That’s where business insurance—like General Liability—steps in.

How Much Does It Cost?

Good news:  For solopreneurs, General Liability coverage is very affordable. Most home-based business owners pay between $25 and $50 a month for solid protection. 

Your rate depends on a few factors:

  • Your industry (consultant vs. product seller), including:
  • Annual revenue
  • Claims history
  • Location
  • Whether you bundle with other coverages (like Professional Liability or Business Property)

Some insurers even offer General Liability tailored specifically for home-based businesses and freelancers—so you don’t pay for coverage you don’t need.

What Does It Cover?

Here’s a more detailed breakdown of what GL typically includes:

  • Bodily Injury: Covers medical expenses or lawsuits if someone is injured on your business property.
  • Property Damage: Covers damage you may cause to someone else’s property during your work.
  • Personal & Advertising Injury: Protects against claims of libel, slander, or copyright infringement.
  • Legal Fees & Settlements: Covers your defense costs and any judgments or settlements.

What It Doesn’t Cover:

GL doesn’t cover:

  • Your own injuries or property damage
  • Employee injuries (you’d need ’Workers’ Comp for that)
  • Professional mistakes (you’d need Errors & Omissions coverage)

Still not sure? Here’s a quick quiz:

  • Do you meet clients in person—even at a café?
  • Do you post content online?
  • Do you sell services or products?
  • Could you afford a $10,000 lawsuit?

If you answered “yes” to any of these, GL insurance should be on your radar.

The Confidence Factor

There’s something powerful about knowing you’re protect.  Insurance isn’t just about risk- it’s about peace of mind. With GL in place, you can show up to your next launch or client meeting with confidence. You’re saying, “I take my business seriously—and I’m here for the long haul.”
 

Final Word: Protection Is Power

You may be running a lean, efficient, home-based empire—but even empires need shields. General Liability insurance is one of the smartest, most affordable ways to protect yourself and your dream.

It’s not about expecting the worst. It’s about building something so worthwhile, you’re willing to protect it.

More about April

I own a Farmers Insurance Agency that I started in 2008. We can insure anything you "can stick a key in" when it comes to auto/home/business/life insurance.  I also own a second company called DPX DUI Process Experts which I created in 2012. We offer a concierge free service for clients who have a DUI conviction providing step by step guidance to regain their drivers license. My company connects the client with the mandatory steps such as Alcohol Screening, Traffic Survival School, Ignition Interlock and SR22 needs so they can regain their license.   I am passionate about continuing to grow both my Insurance Agency throughout Arizona as well as expand DPX DUI Process experts nationally.