If you work from home on a part-time or full-time basis for your business, Its important to ensure that you are adequately covered by an insurance policy that is tailored to your profession.
What cover do I need?
There are various areas to consider when insuring your home-based business, which depend on the type of work that your business does.
These are some policies worth considering:
Professional indemnity insurance: You need this if you advise customers or clients on a professional basis. Professional indemnity cover can help to protect you in situations when you make a mistake in your work, or if the help and advice your client receives isnt up to scratch. If the client then suffers a financial loss as a result, you may be faced with a claim for compensation.
Regardless of whether you feel the error is on your part, you could still incur legal costs which could cripple your business financially. Professional Indemnity insurance can cover this compensation and any ensuing legal costs, and help to keep your business running.
Liability insurance: This covers you against the damages you would have to pay out should a member of the public suffer an injury or have their property damaged at the premises used for your business. A claim could arise from something as simple as a slip on a wet floor resulting in a fractured wrist.
Business buildings insurance: As someone who conducts business from home, this will cover damage to your buildings, for example from a flood or fire. Its important to note that this insurance covers your home for both business and personal use. Therefore you only need one form of cover as opposed to a separate personal home policy and business policy. Please note that your personal contents will not be covered by a business building policy.
How to choose a home business policy?
If your business requires professional liability insurance, its worth asking your clients what cover level they expect. Ensure you review your quotes in detail, paying particular attention to exclusions (or endorsements) that apply to the policy.