According to one study, 60% of home-based businesses don’t have business insurance coverage because the owners assumed they were covered by their homeowners' insurance. That's not always the case. If your eBay business is based in your home, make sure you understand your coverage by checking your homeowners' policy and confirming your understanding with your agent.
If your business is home-based, you may be able to get fairly inexpensive coverage with an in-home business policy. These policies typically cover business property and liability, and some also provide business interruption protection. According to the Insurance Information Institute, an in-home business policy will cost something in the range of $250 to $400 a year for about $10,000 of coverage. However, your business will have to meet the insurance company’s requirements for coverage, which may include having very few employees, bringing few business visitors to your home, or purchasing your homeowners’ insurance from the same company.