Does Your Home Business Need Insurance?
Although your home and contents may already be more than adequately covered by insurance, if you operate and run a business from this comfortable location you may not be aware of the recommended insurance coverage requirements. In fact, the majority of home-business owners do not even realise that working from home presents many additional insurable issues and potential hazards.
Are You At Risk?You may run a small-scale home business that employs just yourself, a slightly bigger business that requires additional help on an ad-hoc basis or a larger enterprise that employs a number of people who work directly from your premises. Your insurance needs will obviously depend on the nature of your business and the number of people you regularly come into contact with.
Not only are you accountable for anyone you employ as staff, part-time or otherwise, but also for each potential client who visits your home in order to do business with you. Your Building and Contents Insurance is not going to cover any medical costs incurred, so not having adequate insurance to provide coverage against accidents caused in your home environment during business hours, puts all home-business owners at considerable risk.
An Accident Waiting To Happen?So you invite a new client into your home office and while you are making them a cup of coffee they make a trip to the bathroom and slip on your polished floor. Are you covered for such eventuality? Small home-business owners who operate a craft business from their kitchen table, or provide a sedate service like teaching can comfortably assume that their current home insurance will provide sufficient coverage for their business needs. It is important to regularly review the details of all policy documents however, and to update policies where necessary.
Home-business owners who specialise in the delivery of a service, like massage and beautician services, should already have adequate Personal Indemnity Insurance and/or Public Liability Insurance coverage, but may need to check this extends to cover facilities as well as physical skills provided. Business Interruption Insurance may also be a policy worth considering.
Home-Business Insurance CoverageIf you employ staff to work from your home you will have to have sufficient insurance protection to cover each individual’s potential requirements. Not having adequate insurance coverage can cost the home-business owner large amounts of money, associated by theft, accidental damage, vehicle accidents or liability caused by an employee, or visiting client, injuring him/herself in your home. It also makes sense to check your personal business equipment – computers and other office essentials – are adequately protected.
If your business provides products, and a customer or client is injured by one, your insurance policy should also be able to provide coverage for this. If you exhibit your business wares at exhibitions your home-business insurance must also provide sufficient coverage against accidental injury, damage or negligence at these events.
What To Do:
- Check all current Building and Contents Insurance documentation and update where necessary.
- Carefully check and research all business policy options. There are a number of specific home-business insurance packages available, so make sure they fit your personal requirements.
- Ensure you have sufficient Public Liability Insurance.
- It is also worth considering Income Protection Insurance, particularly if you run your home-business as a full-time concern.