If the latest research is anything to go by, there are many home-based small businesses in the UK that are either under insured or not insured at all. While working at home frees you from outgoings such as lease payments and the cost of commuting, you’ll still need to have proper business insurance.
Whether you’re an independent digital retailer or ‘webpreneur’ requiring internet traders insurance, or a freelance creative like a graphic designer based at a home office, failing to get properly insured leaves you vulnerable to a variety of risks.
Read on to find out some of the main reasons why home enterprises need to have a tailored business insurance plan in place.
Your home contents insurance won’t cover business items
While assuming anything under your roof is protected under home contents insurance is an easy assumption to make, items such as cash and stock won’t be covered. Having business insurance covers the financial implications of dealing with unfortunate occurrences such as stock damage and theft.
Products that are sent through the post or delivered via private courier need extra ‘in transit’ protection just in case they don’t reach the customer or are damaged on the way there.
Home-based businesses need legal protection
Every business faces legal risks that insurance must cover. Even if your business is based at home, legal protection is still necessary. Any business providing advice or services to other businesses or individuals must have professional indemnity insurance.
This covers the potentially huge financial cost of dealing with legal claims from unhappy clients for the likes of professional negligence, data loss, copyright infringement, defamation and breach of contract.
A simple misunderstanding or tiny mistake can easily escalate into a legal situation, so it’s always in your best interest to be prepared.
Public liability and product liability insurance are essential when faced with compensation claims from a customer or member of the public who has allegedly been injured or fallen ill as a result of your business or an unsafe product sold to them.
Your home office might need separate damage protection
Similar to your home contents insurance, standard buildings insurance probably won’t cover a home office that’s used for business purposes. So if there’s any damage caused by occurrences such as a fire, vandalism or freak weather, the cost of any repairs might not be covered under your existing policy.
For peace of mind, double check with your provider whether or not your home office is covered under your current buildings insurance plan and get it updated if necessary.
Every home business is different
Whatever industry you work in, your home-based business will have unique requirements that need to be covered as part of your business insurance. This is why The Insurance Octopus provides unique policies specially tailored to specific types of home-based small businesses.
Even ventures within the same industry can differ significantly from each other. This is why your individual home setup and circumstances are taken into consideration when putting a bespoke business insurance package together.
Don’t forget,if you have one of more employees, even if they work mobile, are temporary or don’t work many hours, you’re required by law to have employers’ liability insurance.
After getting the core elements arranged, there are a series of optional add-ons available that will further strengthen your insurance policy.
To prepare for possible periods where you’re unable to conduct your business due to illness, injury or property damage, you can consider business interruption insurance that covers the financial implications of trade loss due to unforeseen circumstances.
Get your tailored home-based business quote today by contacting The Insurance Octopus.