But whilst working from home has some great advantages, there are some important aspects that many overlook.
One of these is the need for separate business insurance to cover things from office equipment to stock. Many home-workers assume that all their business related equipment and activities will be covered by their home insurance policy but this is designed to protect your domestic space and personal items only.
In fact, failing to inform your home insurance company that you are conducting a business from your domestic premises could leave your entire home uninsured.
What’s more, if your home-based business employs at least one member of staff in addition to yourself, you’re required by law to take out employer’s liability insurance.
Whether or not you have any employees, business insurance that is designed to protect your commercial assets and equipment is still important. Home contents insurance is rarely suitable even when extended and the potential losses from being under-insured should the worst happen could end your new venture before it’s had chance to get started.
There are several different types of business insurance that might be applicable to your home-based enterprise depending on the type of operation, the value of your assets, and other factors.
• Office contents and computer equipment
• Stock
• Portable items, including laptops, mobile phones, and PDAs
• Business interruption insurance applies in cases where the normal flow of business is interrupted. This will apply where your business cannot function normally and can cover lost wages or revenue, and increased costs of business operation that might result.
• Public Liability insurance provides you with cover in case any member of the public, or an employee, makes a legal claim against your business. Public liability cover isespecially needed if your customers enter your home for business reasons. Limits can vary from £2 million to £5 million.
• Employer’s Liability insurance is required by law if your business employs at least one person in addition to yourself. The legal level of cover is £10 million
• If your business provides professional services and advice then you may need Professional Indemnity Insurance.
Check Your Existing Insurance
Regardless of the type of commercial insurance you choose, it’s also a good idea to give your home insurance company a call and let them know you’re operating a business from your home.
In most cases the existence of a small, office-based business won’t affect your existing home insurance. The standard policy will usually exclude any cover for a business. If your business involves an activity that increases fire risk, for example, your insurer may adjust your premium or terms.
If you withhold or fail to declare this information, the insurance company may void the policy and decline any claims.
Check your car insurance too, and find out if it allows you to drive your car for business purposes.
For further advice call on working from home business insurance call Jeremy at Entrust on 0844 272 5358.
More information can be found at http://entrust-insurance.co.uk/personal.html
Visit us at www.entrust-insurance.co.uk