This really does sound dull as dishwater but in the UK if you run a home business and have anyone working for you, you are obliged to have employers liability insurance. It doesn’t matter whether you have a team of builders working on a site or someone helping you stuff envelopes in your back room. If you are employing them then you need the insurance. It covers claims made for all manner of things, but for example if an employee trips over your kids toy and breaks their leg, employers liability insurance will cover the compensation they can claim.
You don’t of course require employers liability insurance if it’s only yourself that works at home. Unless you are clumsy and feel like suing yourself for it.