Insurance for home-based businesses

As a home-based business you need to make sure you have the correct level of insurance to protect yourself. One of the most common mistakes made by home-based business operators is to assume that home and contents insurance covers their business risk - in many cases it doesn’t.

Insurances to consider are:

• Public liability cover for persons visiting your business at home (e.g. customers and suppliers)
• Workers compensation for any employees working from your home
• Fire, storm and theft cover for the loss of any stock and equipment
• Professional indemnity insurance if you're in a service industry, especially if you're contracting to government
• Personal accident or illness
• Costs arising from interruption to your business
• Marine policy if you send products via freight carriers or post.

It’s important to note that many policies don't cover tools of trade, office furniture or computer equipment used for your business, unless you've specifically advised your insurer and they've agreed to cover you.