Home business insurance

Do I need insurance for my home business?

Probably, yes.

Even if you’re just starting up or doing a little something on the side in your spare time, likelihood is, you’ll need insurance of some sort. Because every business, no matter how small, faces certain risks.

Selling something? Then think about how you’ll recuperate if your stock gets damaged, or what you’ll do if customers complain about your product.

Or perhaps you’ve set up as a massage therapist and invite clients into your home. What if somebody trips over or believes your massage has worsened an existing injury?

Lots of things to think about.

If you make a mistake, fall victim to a cyber-attack, or a client says you haven’t done your job properly, can you afford to protect yourself from a claim?

By putting together a home business insurance package, you can keep on working with a clear conscience and peace of mind. With your reputation, assets, and earnings protected, you’re free to concentrate on running the show.

What insurance do you need if you run a business from home?

Office insurance. You might assume that your office and everything in it is covered by your home insurance. But what if you’ve assumed wrong? Home insurance isn’t the same as business insurance, so we’d advise checking your policy. Especially if you have stock that you keep on the premises.

Professional indemnity. It makes no difference where you’re working from. If you’re offering advice or a service, you could be vulnerable to a PI claim. If the advice you give proves to be wrong, or a piece of work you’ve done isn’t up to scratch, you could be in trouble.

Cyber insurance. This is probably relevant to most of you. Because who doesn’t use the internet to run their business? Sending emails, storing client information, taking payments. It’s all digital these days, and that makes you a target for cyber criminals. Our home wi-fi networks usually aren’t as secure as business networks, so you’re more vulnerable.

Employers’ liability. If anyone works for you, even part time, you must have employers’ liability. It’s law. That’s reason enough.

Public liability. If you meet face-to-face with clients, this is an important one. It’ll cover you for third-party accidental injury and damage.

What’s covered by home business insurance?

Your things. Accidents and mishaps happen. With business contents or portable equipment insurance cover, any equipment you rely on to run your business will be replaced or fixed if it’s lost, damaged, or stolen. There’s also public liability to cover costs if you accidentally damage something your client or customer owns.

Your reputation. Your reputation will already be on a high, just by having suitable insurance. It shows clients and customers that you’re trustworthy. And if things do go wrong, at least you’ll have legal representation. Professional indemnity, public liability, and cyber insurance will pay for an expert lawyer to fight your corner and keep your reputation intact.

Your money. And your business. Ultimately, defending yourself in court will cost you big time without the right insurance. If you’re not covered, a serious claim could completely wipe you out. Your savings. And your beloved business, that you’ve built from the ground up. Both could be gone in the blink of an eye.

Home business insurance is there to protect your livelihood. Defend you. Compensate others. Look after your workspace and equipment. And help you sleep better at night.

What’s home business public liability insurance?

By inviting people into your home, you’re increasing your chances of a claim. Because people are clumsy. And no matter how careful you are, accidents are always waiting to happen. Fact.

Home business public liability insurance will take on your legal costs if a client makes an accidental injury or damage claim.

Say your office is at the bottom the garden. Your cheeky pup lets himself out and bounds into a client. Laptop’s in the pond. Client’s muddy with a dislocated a knee. Oh dear.

Trips, slips, or falls. Drops or knocks. Public liability insurance is there to get you out of a hole.

It’ll also cover you if you’re out and about visiting clients or you’re at an event. If you break something in a client’s home or a customer has a nasty fall in your pop-up shop, public liability will come to the rescue.

What insurance do I need for a home office?

Office insurance is broken down into three types. You don’t have to have all of them, you can tailor it to your specific needs. Here’s how it goes:

Commercial property insurance. If your home office is separate to your main dwelling, you might need separate insurance too. It’ll cover the building itself in the event of a flood, fire, or another unfortunate incident that causes damage.

Office contents insurance. Whether your office is in the garden or in the spare bedroom, it’s a good idea to have contents cover. Because standard home and contents insurance policies won’t necessarily cover equipment that you use for business. Business-specific contents insurance will pay for the replacement or repair of anything that’s lost, damaged, or stolen.

Portable equipment insurance. If you go out to visit clients or attend events, your equipment probably goes with you too. If anything gets lost, stolen, or damaged on your travels, portable equipment insurance will pay for it to be replaced or repaired.

Read more about do I need home office insurance?

How much does home business insurance cost?

That depends on several things. It’s all about weighing up the amount of risk you face. And the type of risks you face.

You might be working alone and only need professional indemnity and cyber insurance. But if you do a practical job or sell products, and you employ others, you’ll be more at risk and will need to take out several policies to protect you. Which will cost more.

One thing’s for sure though. Paying a small monthly sum could save you from financial meltdown. So it’s probably worth it.