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The Insurance Implications Of Running A Business From Home


Did you know your household insurance may not provide adequate cover for your business if you trade from home? With 2.1 million businesses run from home, insurance is often overlooked, with a household insurance policy already in place. However, household insurance is designed to cover a domestic premise and its belongings, not the needs of a business. What would happen if your house caught on fire due to your business activities; will your household insurer pay the claim? In many cases the answer is no, unless you have disclosed these details to your insurer. Working from home insurance has been specifically designed to cover the requirements of a home-based business and can be extended to cover your personal buildings and contents. A business owner may already have equipment that has been purchased by the business. This equipment needs to be insured correctly, as many household insurance policies will have restrictions in relation to business contents. A working from home policy allows you to protect these, whilst extending to cover items lost, stolen or damaged away from your home. Your business may expand and need to employ extra staff; what would happen if an employee was injured in your house? The Employers Liability Act 1969 states that it is a legal requirement to insure against liability for injury to an employee arising out of their employment. You could be fined up to 2,500 by the Health & Safety Executive for each day you are without suitable insurance. A working from home policy from Higos can be tailored to include this insurance. How would you pay for your mortgage if your business could not trade? Business Interruption insurance covers your loss in gross profits if a loss, which was insurable, occurs at your house, leaving you unable to trade. Many household policies include public liability insurance. However, if clients come into your house on a regular basis they would not be covered. Public liability insurance provides cover for third party property damage and injury caused by negligence, as well as cover for regular visitors.

Posted by: Higos Insurance Services Ltd