Working at home insurance

When you make the decision to work at home, insurance is probably not something that springs to mind as an essential requirement. After all, you have building and contents insurance, what else could you possibly need? Well if that sounds like you, then don’t worry because you’re not alone – it’s estimated that at least a million home workers are putting themselves at risk in the belief that their home businesses are covered by home contents insurance.

The consequences of this could be heavy fines, high legal fees, or even the loss of your business in the event that claims are made against you when something goes wrong. If you take a look at your home contents insurance policy you will probably discover that it excludes any business activity run from home.

Imagine that you are running an eBay shop from home. You’ve got all your computer equipment and a spare bedroom doubles up as your stock room. Now imagine that you are the victim of theft, fire or flood. The obvious reaction will be to make a claim on your home contents insurance, but you home insurer would have the right to turn down your claim because you haven’t declared that you are operating a business from home.

And don’t forget, as with any business you have an obligation to protect your customers under legislation such as the Sale of Goods Act. If you are dealing in goods, it is essential that you take out product liability insurance to protect your business if a product you are selling turns out to be faulty or dangerous.

So what other insurance do you need to consider?

• Public liability cover and professional indemnity insurance – whatever type of home business you run, you ought to have peace of mind that in the event of a legal claim made against your business, you are covered for the cost of any award and legal costs.
• Employer’s liability insurance – if you employ staff this insurance is required by law and protects you in the event of an accident or illness.
• Car insurance – check whether your existing policy covers you for business travel; some don’t.

If you need to start shopping for insurance, take a look at www.simplybusiness.co.uk to compare quotes.