Many people assume that their homeowners' insurance protects them for any liability in their home, including work done at home.Talk to your insurance agent about getting either an endorsement added to your homeowner's policy. This is the most cost-effective option but generally has a cap on business income below $10,000.Alternatively, you can get a separate, home-based business liability policy that will cover the work you do at home. Expect to spend at least several hundred dollars annually for a separate business policy.If you are an employee of another company and you are working from home, you do not need to obtain insurance coverage. The employer covers liability for your work, and they should already have a policy in place.