Even individuals who work primarily from home must occasionally engage customers or members of the public. While the danger is relatively minimal, a single accident can ruin a business, and premiums for low risk businesses are generally inexpensive and flexible to meet your needs. Moreover, many self-employed business incur risks to clients simply from the act of receiving and shipping goods.
Running an online business that is responsible for making or sending deliveries can result in damages to customers due to careless or faulty packaging. If a recipient injures themselves while opening such a package, they are entitled to sue your business for negligence.
Self-employed businesses also must deal with the issue of credibility, and having a suitable LI policy can help establish trust with new clients. A strong policy will tell customers that should an error occur, the business will be able to fully compensate the injured party for personal and property damages.
In fact, when pitching for contracts, having an established LI policy can make your business more attractive than your competitors. Some clients only do business with companies that meet an arbitrary prerequisite of insurance coverage.