Required? Unknown, but a quick call the the ATF Field Office could answer that for you.
Peoria might require it as a prerequisite for your business license.
Liability insurance is fairly inexpensive. If you’re home based, Homeowners Insurance might even cover a little if it’s part of your policy, and then again your policy might specifically preclude any home-based business also. I know the NRA offers FFL insurance options also.
I’d rather have it and not need it than need it and not have it…