Last Updated: February 22, 2024, 8:32 am by TRUiC Team

Home Tutoring Business Insurance

Getting insurance for your home tutoring business is essential.

Insurance is a key requirement for protecting home tutoring businesses from various risks. With insurance coverage, your home tutoring business can be shielded against liability for physical injury, property damage, and financial loss. 

For example, a competitor may sue you for copyright infringement, alleging that some of the materials you use were originally created by them. You’ll be happy to know that you can shield your business by taking out insurance.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Home Tutoring Business

General liability insurance is — generally speaking — one of the most important insurance policies for home tutoring businesses. 

Some of the risks general liability insurance covers are:

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

While general liability insurance will protect your home tutoring business from a wide range of risks, there are other insurance policies especially designed for specific risks. Such specialized policies include:  

  • Home-based business insurance: A home tutoring business can protect against damage or loss to the home office and its contents from events such as fire, theft, or natural disasters. This insurance will cover risks not covered by your homeowner’s policy.
  • Errors and Omissions Insurance: This type of insurance protects the business from claims of negligence, mistakes, or failure to perform professional duties. If a tutor makes an error that affects a student adversely, this insurance can help cover legal expenses and/or compensation.
  • Umbrella Insurance: Umbrella insurance can provide additional liability coverage beyond the limits of the tutor's general liability and professional liability insurance policies. This type of insurance can be useful in case of a major lawsuit or liability claim that exceeds the coverage limits of the other policies.

There are two principal types of insurance providers available to you when looking for coverage for your business:

  • Traditional brick-and-mortar insurers 
  • Online insurers 

We typically encourage small businesses to consider online insurers like Tivly or Next as, despite being relatively new to the insurance scene, they offer an excellent, affordable way of accessing high-quality, personalized insurance.

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Cost of General Liability Insurance

On average, home tutors in America spend between $400 - $700 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a home tutoring business to other professional industries using the graph below.

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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Common Situations That General Liability Insurance May Cover for a Home Tutoring Business

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Example 1: During a tutoring session, your dog runs off with the student’s computer bag, damaging all its contents.  Your general liability policy should cover the cost to repair or replace the devices.

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Example 2: During a severe storm, a student slips and falls in your entryway.  Even though you took every precaution, the family names your business in a lawsuit for their injuries. General liability insurance will cover legal representation and damages awarded in the lawsuit. 

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Example 3: While at a client’s home for a private tutoring session, your bag hits a painting, causing a large gash in the art piece.  Your general liability policy should cover the cost to replace the damaged art.

Other Types of Coverage Home Tutoring Businesses 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 of the most common types of coverage:

Professional Liability Insurance 

If a customer does not feel you have delivered the quality of service agreed upon, they have a legal right to sue you for damages.  If a client decides to take legal action, even if there is no merit to their claim, your professional liability insurance will cover your legal costs, as well as any resulting payout.  

Home-Based Business Insurance

Since a homeowners policy excludes business property and business-related losses, it is important that those working out of their home purchase the proper coverage.  A home-based business insurance policy is there to protect you, ensuring seamless coverage.  

Business owners should check with their homeowners' insurance company to determine if an extension of coverage for additional premium is available.  If not, businesses can purchase home-based business insurance as part of a business owners policy (BOP).

Workers Compensation Insurance

If you decide to hire employees, the state will require you to purchase a workers compensation policy on your team.  This ensures coverage for lost wages and medical bills, should an employee get injured while on the job. If the injured employee decides to sue for additional damages, the insurance carrier would cover the cost of your legal fees.  

Workers compensation is generally purchased as a standalone policy.

Commercial Auto Insurance

While you operate out of your home, you will often find yourself traveling to clients’ homes for tutoring sessions.  Depending upon how often you use your vehicle for business purposes, it may be necessary to purchase a commercial auto policy.  

Businesses can purchase commercial auto insurance as part of a business owners’ policy (BOP) or as a standalone policy, depending upon the carrier.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your home tutoring business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an 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.
  • Maintain your corporate veil.

Home Tutoring Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial 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.

"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.

Generally speaking, yes. It’s advisable to put business insurance protection in place before your home tutoring business is up and running. Coverage you may need from the start includes commercial auto insurance for accidents and damage to any vehicle used to travel to and from tutoring assignments. 

Not necessarily. Certain exceptions may be written directly into your home tutoring business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.