If you’re about to start up a business from your home, then it’s crucial that you’re correctly insured and that you fully comprehend the difference between a home contents insurance plan and one that covers the needs of your business
What will I need?
All companies need a bespoke insurance policy whether or not the business is being run from your home or a designated place of work.
The first thing you’ll need to do is need inform your mortgage provider and your current home insurance provider that you intend to run a business from home, simply because it might be necessary for you to extend your policy. Similarly, the contents insurance policy you already have may not be adequate, especially if you’re buying and installing expensive new equipment for your new business venture.
You may also need a range of other bolt-on business policies. The most common are as follows:
Professional indemnity if you’re selling your knowledge or services, this will cover your business if it’s claimed against for financial loss sustained by a client due to incorrect advice or faulty services;
Employers liability, which will cover your business for claims resulting from injury or illness suffered by an employee at or because of work;
Public liability if you’re going to have visitors coming to your home/office, or if you work from other premises (e.g. a client’s office), this will cover your business if a client or third party claims for an injury or property damage and your business is found to be at fault.
Anything else I should know?
Apart from the kind of cover business insurance provides you with as mentioned above, such policies have the added benefit protecting against loss, theft or accidental damage of itemised articles, such as business equipment or stock that you keep at your home.
Because some of these items may legitimately be covered by your home contents policy, make sure you double check what exactly you are covered for just to ensure that you’re not over-insuring yourself and paying over the odds.
Nest, if you intend to regularly take some of your business equipment outside of the home or the UK, you can also request additional cover for loss or damage that might occur somewhere other than your home address.
And finally, a business insurance policy will often guard against income loss in the case that some of your property is lost or damaged, therefore causing you to lose earnings as a result.