If you are thinking about starting a business from your home, or if you already run a business from home, you need to consider your insurance cover very carefully. If you think you can rely solely on your home insurance policy for cover, think again as you could find yourself underinsured if you ever need to make a claim.
Public Liability Insurance
This policy covers you for the cost of a public liability claim from a third party, such as a member of the public (not an employee), that has suffered injury or property damage caused by you or your employees in the course of your businesses activities.
It can cover legal costs for defending claims and pay compensation awarded to a claimant if your business is found to be at fault. It will provide you with peace of mind that your business is covered.
Professional Indemnity Insurance (PI)
Professional indemnity insurance (PI) is designed for anyone who provides advice or offers a professional service or designs to clients, which are common for a lot of home-based business owners.
It will cover legal costs and expenses incurred in your defence if you are alleged to have provided inadequate services, advice or designs that have caused your client to lose money.
Business Interruption
Provides cover for lost revenue if your business needs to close due to fire, flood or burglary damage at your home. Building cover and business interruption could be the difference between you staying in business and having to close it in the event of an unfortunate occurrence.
Contents and Stock
Certain types of businesses retain a lot of stock on-site, thus need a stock insurance policy or a comprehensive business contents insurance policy to mitigate risk. This type of cover provides up to £50,000 of cover for the cost of replacing equipment, furnishings, or food and drink that is damaged or stolen. For example, if you run a crafts business from your home, this policy could be ideal for you.
Legal Expenses Insurance
Legal expenses insurance provides you with cover (in any one claim) for legal representation costs in the event of a tax investigation brought against you. This type of cover goes much deeper than that and will provide you with cover for the expenses you incur if you are called-up for Jury Service or a legal proceeding.
