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