Business Insurance for Home Health Stores

Business insurance is designed to protect a business owner's financial assets and is an essential investment for a home health store.

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About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.


Example 1: A potential customer has stopped by to learn more about the variety of vegan health supplements you offer. When he makes his way to the restroom, he slips on a wet floor, breaking his tailbone and fracturing his wrist. He requires ambulance transport and demands that your business pay for his medical costs. General liability insurance should cover the medical expenses.

Example 2: Your business operates in a very competitive market and a cross-town rival claims that you stole your logo design from them. Their image is copyrighted, and you know that you’ll need legal representation. Your general liability insurance will likely work to cover your legal defense costs and any damages that may be awarded in a lawsuit.

Example 3: An employee is helping a customer load some bulk items into their car using a roller cart. As they head out of the back door of your store, the employee loses control of the cart, sending it smashing into your customer’s luxury vehicle. General liability insurance will likely pay for her vehicle repairs and cover the cost of the damaged merchandise.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost Of General Liability Insurance

On average, home health stores in America spend between $350 - $750 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Other Types Of Coverage Home Health Stores Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all home health stores should obtain:

Product Liability Insurance

Product liability insurance is designed to protect your company if a customer or client claims that one of your products caused them injury. While your team works hard to avoid mistakes, if your customer sues, product liability insurance will cover your legal fees and pay out any damages that may be awarded.

Workers’ Compensation Insurance

If you have any part-time or full-time employees, your state most likely requires that you carry workers’ compensation coverage. This essential insurance policy not only protects your business but also helps to pay for medical treatment and lost wages if your employees are injured while performing job-related duties or fall ill following a workplace accident.

Types Of Coverage Some Home Health Stores May Need

In addition to the policies outlined above, there are a few other types of coverage your home health store may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Commercial Auto Insurance

If you use a company or personal vehicle to complete business duties, you will need to invest in commercial auto insurance. This comprehensive coverage will pay for damages to your car and medical costs in the event of a traffic accident. If you or an employee are found responsible for the accident, this coverage will also extend to repairs and medical costs for anyone in the other vehicle.

Commercial Umbrella Insurance

General liability insurance will protect your business from most claims against it. However, there may come a time when your primary policy limits are exhausted. For example, a big lawsuit could exceed your primary coverage and leave you responsible for the remaining damages. If this happens, commercial umbrella insurance will kick in to cover the remaining legal costs and prevent you from paying out-of-pocket.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

Steps After Getting Business Insurance

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

Frequently Asked Questions

What is included in a business owner’s policy?

A typical business owner's policy includes general liability, business interruption, and property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company's needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a business?

You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it's best to be proactive when it comes to protecting your assets. After all, you can't buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.

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