Is Business Insurance Required for People Who Work from Home?
If you are working from home then your home insurance cover may not be enough to protect your business against any odds. You must have your standard home cover that includes the building and its contents. Apart from that you need business insurance cover which may depend on the kind of business. If you are working steadily from home then you may need an additional cover for which you need to inform your insurer.
If you do not inform your insurer about your working from home status then you may face invalidation of your policy. You need to keep your provider updated with any changes that may affect your policy. You can apply for business equipment policy which would protect the business gadgets and instruments like laptop, printer and other stuff against any kind of damage. You have to check the extent of protection as it varies with every policy and provider. In most of the cases, you get a cover which ranges between£5,000 and £9,999 while some may offer cover that exceeds £10,000.
Types of business use on home insurance:
Businesses that are done from home can be classified into three categories:
Clerical business use only – Here you have office equipment like a laptop, printer, desktop etc. A cover for these is a must so as to reimburse the cost in case of damage. In case you work for an employer from your home then your employer’s insurance would cover all the equipment and so, you don’t need to take separate policy else it will double up the insurance cover.
Visitor interaction on the property – Your insurance provider must know if your home-office has regular visitors. Like if you are a beautician or accountant then people will drop into your office and if they get hurt due to any reason then you must have an insurance to support and manage finances during such times.
Other business use – If you have a workshop within the house like a carpenter shop or something of that sort then do inform your insurer about it.
The policy will be based on all these aspects and so, read it properly to understand everything about your business insurance policy. Again, if you store business stock in the office then also you need to inform your insurer about it as it will not be covered under your standard home content policy. If there are visitors coming frequently to your home then you must be have a public liability insurance so that any accidental damage to them could be covered under the insurance. Also, if you have a staff employed for your home-business then employer’s liability insurance must be there in place to help you in case something happens to the staff.
With all this in place, there are certain restrictions that you need to consider. If you have a mortgage or rental agreement then you may not use the home as a business place. You must check your property documents to see if you are not breaching any agreement. Depending on your situation, you should buy a business insurance. It can be an extensive cover for equipment or a simple liability cover for visitors.