Traditional businesses operated out of a building require liability insurance and other types depending on the structure and day to day activities of your particular enterprise. It is always best to contact your insurance agent and ask him or her the tough question when it comes to making sure you are adequately protected from law suits. Many people who operate a small business from their home office or even lap top may not need business coverage at all.
I've operated an on line business for several years and enjoy the fact that I have no insurance costs associated with that business. I have no customers who come to my office so there is no real risk in accidents happening on the property, so I don't have a liability policy.
If you already have home owners insurance coverage that will cover the loss of contents it may not be necessary to have additional coverage to cover your business assets. In my case the computer I use would be covered by my regular policy and the need for a separate one and a separate Bill is just not there.
Internet entrepreneurs enjoy a much lower overhead that traditional entrepreneurs and insurance cost is just one of them. If you home business has assets on the premises that might be stolen or damaged it could be a different story, so I recommend you ask your agent.
Asking your agent tough questions that could save you money every month without exposing you to additional risks can be tough, and its in the agents best interest to have you be over insured. Many Americans are over insured and your home business is another opportunity for this to become more of a problem than it already is, so make sure you let your agent know you want to be covered but you refuse to be over charged for coverage you really don't need.