If you freelance or work from home, you may be thinking that you don't need to worry about insuring your business simply because you don't have any employees or a dedicated business space. This is not the case, though. Even a simple home service business requires some insurance. The following guide can help you decide which products are for you.

Liability insurance

Commercial or business liability policies protect you from personally being sued in the event your service or product causes injury to a client or their property. For example, if you fix mobile phones, and your fix leads to an electrical hazard that results in injury, you don't want to be liable in the event you are sued. Instead, you want a liability policy that will pay out the damages to the injured party.

Office insurance

If you work from home, you may assume that your home-insurance policy covers any losses. This may be true up to a point, but you may also need to get a rider to cover the extra costs of any equipment or irreplaceable information that is kept in the home office. Your insurance company may also require additional coverage amounts if you use certain types of high-risk equipment on the premises, such as items that pose an increased fire risk. If you are a renter, a contents policy takes the place of the home-office rider on a homeowner policy. Just make sure the contents policy is at a level that covers your office equipment.

Interruption insurance

This is a must if you have concerns about income loss due to an inability to work because of outside forces. If you live in an area where winter power outages are common and need computer and Internet access to work, for example, you can be covered by an interruption policy that will cover the lost earnings when power outages and loss of work occur.

Disability insurance

Don't overlook disability insurance. You may think that working from home means you will be able to work no matter what, but injuries and chronic health conditions could lead to a major loss of income. A disability policy ensures that you can replace your income if something does happen so you won't have the stress of working and trying to recover at the same time.

For more help in choosing the types of policies that you need, talk with a commercial insurance agent at a company such as Western Reserve Group.