If you work from home, you need the right insurance for your home-based business.
Home business insurance is cover for people who routinely conduct their business from home.
While it’s possible your home insurance will provide some cover, it’s important to check that you have adequate cover for all your business equipment and stock. If you’re unsure speak to your insurer.
Because every business has its own unique cover requirements, business insurance policies are made up of the elements relevant to that specific business – you can pick and choose the cover you need.
So if you work from home and need to cover business valuables that you keep there, you can add it to a business policy, along with other elements you might need such as public liability, employers’ liability or something like tool cover.
According to the ONS – around 5.03 million people.
You’ll need public liability insurance if you have customers who regularly visit your home
It’ll cover you if someone is injured on your property.
And, you’ll need employers’ liability insurance if you have people working for you from your home.
It’ll cover legal fees if an employee was to sue you.
If you give out advice that causes your client to lose money, professional indemnity insurance will cover you for any claims they bring against you.
If you have specialist equipment or use a work vehicle, speak to your insurer about adding cover for these to your business policy.
If you work remotely from home for an employer, and your property is not used for any other home business use, you may need to liaise with your home insurer to check you have the level of cover you need.
If clients regularly visit your home, you might need cover for injuries or damages they suffer while on your property, so you may need public liability insurance as part of your policy.
Equipment owned by your employer used to help you work remotely, will not need to be listed under your home insurer, as it will likely be covered by your employer’s own business insurance cover.
If you’re using your own computer, printers or other equipment to work remotely, you’ll need to insure these items yourself or risk paying for repairs and replacements yourself if they’re lost or damaged.
If you’re a contractor, freelancer, or self-employed and use your home as a business premises, you’ll need insurance that protects you, your equipment, your employees and your clients or customers.
The range of cover you may need includes:
Business equipment won’t be covered under a home buildings or contents policy, so you need something more specialist:
That applies even if you’re an Airbnb host.
“For example, theft may be excluded unless there are signs of a break in. There are specific Airbnb policies available which are worth looking into if you’re thinking of becoming a host.”
When finding home insurance quotes, you’ll be asked if your home has ever been used for business or professional purposes. You’ll be given the choice of three options:
If you’re not sure how to define your home working situation, get in touch with your insurance provider who can help you.
If you’re something like a professional potter or carpenter and you have a workshop in your house, this might fall under other business use.
If you’re not sure how to define your home working situation, get in touch with your insurance provider who can help you.
Business buildings insurance covers your home for business and personal use if there's a flood or fire. A business buildings policy could replace your buildings insurance.
However, your business equipment won’t be covered under a home buildings or contents policy, so you need something more specialist.
If you use a laptop, printer or other office equipment, check your home insurance policy for ‘Clerical use’.
But if you’re employed but based remotely, your employer will have insured your equipment, so double check before you buy.