Insurance for Your Home Based Business

    Your home business is a business like any other and as such needs to be protected losses, damage and other risks that it may face.  If you have a home business then here are 5 reasons you should take out business insurance:

    1. To protect any business equipment you have bought that may not be covered by your home insurance policy;
    2. To protect your business equipment, like your laptop and phone, while you are out and about;
    3. Protection in case anyone who comes to your home suffers an injury;
    4. Protection for any employees or freelancers you invite to work at your home office;
    5. To cover your motor vehicle if you use it for business travel.

    What Types of Insurance Are There

    There are different categories of insurance and the type you need will depend on the type of home business you operate. It is unlikely that your home insurance policy will cover your business, so you must speak to them.  Here are the main insurance categories you should be aware of, but a good insurer or broker will discuss with you which types are relevant to you:

    Professional indemnity

    Professional indemnity (PI) insurance is relevant for service based industries and covers legal costs and expenses incurred if you are found to provide an incorrect or inadequate professional service.

    Public Liability

    If you have clients or customers visiting your business at home then Public Liability will protect you in the event that they are injured while on your premises.

    Business Interruption

    Business interruption insurance covers you for loss of revenue in the event that something happens such as a fire or flood that prevents your business from trading.

    Employer’s liability

    Employers liability insurance is necessary when you employee people  – it is a legal requirement if you employ people.  It offers cover for your business in the event that your employee(s) are injured or killed during the course of working for you.

    Business Motor Insurance

    Business motor insurance is different to personal motor insurance.  So if you plan to use your car for business purposes then you should let the insurer know and extend your policy for business cover.

    Anita Forrest
    About Anita Forrest

    Anita is a Chartered Accountant with over a decade of working with small business owners. She is the creator of the ‘Go Self Employed’ website, where she simplifies complicated self-employment topics such as taxes, bookkeeping, banking and insurance.