Working from home has many benefits, especially if you have a business idea which is easy to manage and facilitate. Many businesses of all sizes begun in the home and if you’re just starting out it is a great way to get a start-up going without huge overheads.
Working from home doesn’t mean you can relax and sit back entirely though, you may not have huge start-up costs but there are some things you need to invest in, and insurance is one of them. Here are the key types of insurance you should be considering for your home business.
Buildings and Contents Insurance
If you start a business from home, you may want to look over your buildings and contents insurance policies. You will probably find you need to amend your policy in some way to cover your business equipment and you can also opt for covering items which you may need to take out and about such as computer equipment or other equipment needed to do your job. In terms of buildings insurance, you may find it easier to combine your home and home office insurance into a single policy rather than having several separate policies to consider.
Professional Indemnity Insurance
Professional indemnity insurance is usually the key type of cover for home businesses. Whether you’re running a beauty parlour from your front room or repairing computers and other tech in your office, this policy provides you with financial protection of your services. Many clients expect you to have professional indemnity insurance as it provides them with financial protection should they be dissatisfied and suffer a loss due to your advice and services.
Services such as freelance consulting and coaching are particularly susceptible to professional indemnity claims so it is wise to have a policy in place.
Public Liability Insurance
Public liability insurance may not seem like an important issue for home business owners, but if you invite anyone into your home for work purposes or you visit anyone on their premises, it matters. If a client should suffer an injury or their property become damaged during the course of your work, then you are liable for any financial losses they seek. Without public liability insurance you have to find the funds to cover your legal defence as well as any compensation.
Only horse riding businesses have compulsory public liability insurance but every business should consider it.
Whilst it is unlikely you will need any other insurance policies if you plan to employ someone outside of your family, even on a casual basis then you legally must have employers’ liability insurance in place and you may also want to think about any upgrades needed to your car insurance if it is being used for business purposes.
Working from home is a great start for many people looking to make that move into being their own boss. It is often the first step on a rewarding career path where you only have to answer to yourself. If you do it properly your business will soon prosper but you must ensure you have the right insurance in place to protect your venture as it grows.