Running your own business out of your home can be the first exciting step on the path to being successfully self-employed. But bringing your work into your home can create new risks that must be taken into account.
Your Home Policies Aren’t Adequate
Your home and contents insurance protects your home, but they provide little to no cover against the risks your business presents. For example, there won’t be any type of liability coverage, and your business contents are unlikely to be covered.
You Still Need Cover If the Business Isn’t Under Your Actual Roof
Running a motor trade or fixing cars in your garage? You can still be held liable. In some cases, structures on your property that you use for business will have zero coverage, even if you have a home policy, without a business policy.
Do you Rent? You Still Need a Policy
Firstly, ensure you inform your landlord before you start a home business. Whilst you might not need to worry about protecting the property, you still need cover for your business items such as tools or your computer.
Concerned about picking up forged currency?
It’s a risk that hangs over every business - but it can be devastating for a small business to receive a payment in counterfeit currency. A business policy can assist with covering the cost of lost income.
What about the loss of income?
Should the worst happen, and your home is ravaged by a fire or damaged in a flood, you also have to contend with the loss of income due to being unable to continue running your business. When buying your home based business policy, you should ensure that you have business interruption cover included.
Ensure you get a policy that covers you against Advertising Injury
This protection is especially relevant to creative types working on the internet. Having an insurance policy that protects you if you get sued for libel, slander or copyright infringement is a must have, as you cannot be expected to cover the legal costs.