Insurance for running a business from home

If you work from home, you need the right insurance for your home-based business.

Running a business from home 

If you’re a contractor, freelancer, or self-employed and work from home, you need business insurance that protectors you and your company. 

“Home working can introduce several new risks, particularly when it comes to public liability insurance for business visitors and insurance cover for business equipment,” says Roly O’Neil, our business insurance expert.   

The ONS estimate that almost 15% of UK workers were self-employed in January 2019 - that’s 65,000 more people than the year before.  

If that's you, get the right cover to work from home.  

Do I need home-based business insurance?  

You need business insurance if: 

• Business-related guests visit your property more than once a month 
• You have paying guests staying there  

You’ll need public liability insurance if you have customers who visit your home regularly.  

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 against you.  

If you give out advice that could cause your client to lose money, professional indemnity insurance will cover you for any claims they bring against you.  

Regular business visitors to the property  

If you're a beautician, chiropractor or accountant working from home - or anyone who has clients visit - you’ll need to tell your insurer that you have regular visitors to your place. 

That applies even if you’re an Airbnb host.  

“If you’re welcoming guests as an Airbnb host, your insurer might charge an extra premium or put restrictions on the cover provided,” says O’Neil.  

“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.”  

Adding regular business visitors to your policy could see your premiums increase, as your home and contents will be at a higher risk of damage or theft. 

Other business use  

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. 

Am I covered under home insurance? 

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.