Home Business Insurance

More and more professionals and entrepreneurs are starting a new business. Household based businesses enjoy the convenience and cost savings compared to renting or buying commercial office space. However, running a business from your house without business insurance can be risky. Businesses are required by law to take out employer's liability insurance if they employ any staff. If you do not employ staff, you should still protect your business assets, equipment and building contents. Some business insurance providers also provide cover against client injury and business interruption.

Business insurance for homeworkers protects your business based assets. If you work from home, insuring your business should be reasonably straightforward. Home business insurance has been designed to insure your business without compromising your home insurance policy.

What can be Covered?

• Office contents and computers: the normal limits for cover are from £7,500 up to £20,000.
• Stock Limits: £1,000 is the normal maximum figure although higher limits are available on request.
• Portable equipment such as laptops and mobile phones: £1,500 is the normal maximum figure although higher limits are available on request.
• Public and Employers Liability: £2 million and £10 million respectively.
• Business Interruption: £10,000 although higher limits are available on request.

Home Based Business Insurance - The Details

If your business customers physically enter your residence, you should take out client injury cover. This covers injuries due to negligence and will pay for medical expenses and legal costs. If the operation of your business is interrupted causing lost wages, increased costs or lost revenue, you should take out business interruption insurance. In addition, if your business owns equipment that can be damaged or destroyed by theft, fire or natural disaster, you should take out cover including business equipment damage.

Choosing the right type of home business insurance policy is important. Be careful of companies that offer cheap quotes without first analysing your specific situation. Above all, search the market and read the small print - as your business changes and grows you will need to make sure your home business insurance policy evolves with it.