General liability insurance covers a home business operator from general claims of liability or injury due to negligence, and protects against claims as the result of bodily injury, property damage, medical expenses, libel, slander, the costs to defend lawsuits, and settlement bonds or judgments required during an appeal procedure. If a client injures himself while visiting your office, general liability insurance will cover the expenses related to this claim. Your homeowners’ policy will not cover these types of claims.