Yes, insurance is one of those topics that immediately makes most of us want to switch off, so I’ll keep this brief.
As a home based business your existing home contents insurance will cover you for certain things but you may need extra if;
- you see customers in your home – Public Liability insurance may be required
- you hold valuable stock at home
- you have equipment other than standard office equipment. The usual laptops, printers etc that most people have at home should be covered, but any specialist or very expensive items may well not be. Check what’s covered by your existing home insurance.
- you would be unable to operate your business if your home workspace was damaged by fire or flood
In addition, as a small business or self-employed individual you may need insurance in relation to;
- professional indemnity – in case a customer accuses you of negligence
- employees or apprentices who operate under your direction, even if they are not in your home
- product liability – in case of problems with a product you supply
- personal sickness or accidents which mean you cannot work for a fairly lengthy period (short periods are not generally covered by insurance policies)
If any of these are giving you a sinking ‘ugh, I’d better have a look at that one’ feeling, it’s best to check your position.
A few useful articles and links on this topic:
Money Advice Service: Business Insurance When You’re Self-Employed
SimplyBusiness: Business insurance specialists – cover for home based businesses
Direct Line guide to what insurance your home business might need
Confused.com guide “Insurance for Home Based Workers”
Startups.co.uk Starting a business from home: What insurance do you need?