Sponsored article
If you’re running a business from home, it’s important that you are properly insured and that you understand that difference between a home insurance policy and specific cover for your business activities.
What do I need?
All firms need a properly tailored insurance policy, and this holds true for home businesses.
Firstly, you’ll need to tell your current home insurer that you intend to run a business from home, as you may need to extend your policy. Remember that your existing contents insurance may not be sufficient, particularly if you are bringing in expensive new equipment. You should also inform your mortgage provider.
In addition, you may need a range of other business covers. If you are selling your knowledge or services, you should investigate professional indemnity insurance. If a client suffers a financial loss as a result of a mistake you make, professional indemnity can help to cover the cost of any resultant claim.
If you have visitors to your home office, or if you work from other premises like a client’s office, you should also consider public liability insurance. This can protect you against claims arising from an injury suffered by a client or a member of the public, or damage to their property, where your business is found to be at fault. Claims of this sort can come from something as simple as a trailing cable, but they can be hugely expensive. You should therefore make sure that you are protected.
If you employ anyone you are legally obliged to take out employers’ liability insurance. This can pay out in the event that an employee suffers an injury or illness as a result of their work. There are stiff penalties in store for employers who fail to take out this insurance, so you should make sure that you are covered.
What Else?
In addition to Liability and Indemnity covers, a business insurance policy will often allow you to protect against loss, theft or accidental damage of specific items. For example any pieces of business equipment as well as stock that you keep at home can be itemised and covered. Some of these items may be covered by your home contents insurance as well, so you should check in detail to ensure you don’t have an overlap between your home insurance and business insurance policy.
If you take some of your business equipment outside of the home, and indeed outside of the UK, you can also request additional coverage for loss or damage outside of your normal address.
Finally, a business insurance policy can also protect you against income loss if some of your property is lost or damaged and in turn prevents you from earning as much as you would expect.
Comments