what does liability insurance do for a company that provides a service to people in their homes?

Answer 1

The insurance will cover your business related, non-auto, liability exposures.

For instance, if you bump into a client's plate glass window while doing whatever it is you do in their home, your company would investigate to see if you were at fault and pay the damages.

It could also cover your professional exposures. Say if you were an EMT and you dropped your patient while you were loading her into the ambulance.

If you were a plumbing contractor using a blowtorch to thaw frozen pipes and caught someone's house on fire. Covered.

These were all real claims, by the way.

Answer 2

I think it provides bodily injury coverage as well as property damage coverage. Ask an insurance agent or read your policy.