Do you need insurance for your home office?

Many business owners who work from home believe their current home and contents insurance will cover their business and home office, but unfortunately, that’s not always the case. We’ve answered some of the most commonly asked insurance questions from business owners who work from home.

If my business is only small, do I still need insurance?

Small businesses can be more vulnerable to risks as a single event can have a large impact on their ability to recover. You may think that having your business set up at home will mean it’s covered by your contents insurance, but this is usually not the case. It may cover your home office set-up, but it won’t cover any stock you have or your liability if something goes wrong. It’s best to check with your provider to make sure you’re covered where you need to be.

What if I already have house insurance?

If you already have house insurance, let your provider know you are running your business from home. Some providers will continue to insure your home, but it does depend on the level of risk. They will need to know if clients are entering your home, the materials you keep on the premises that could increase the risk of fire or theft, and what type of business you’re running.

What cover do I need if I have stock?

If your business involves storing stock at your home address, your normal contents insurance won’t cover this. While your stock is at home awaiting sale, you’ll want to make sure you’re covered in case it gets damaged or stolen.

Do I need vehicle insurance?

If you’re using your personal car for business purposes, such as running work-related errands or meeting clients, you need to make sure you have a commercial vehicle policy. On a standard private vehicle policy, if you damage your car while on business errands, your claim would most likely be denied and you would need to bear the cost of repairs.

Do I need liability insurance?

In the event of any legal proceedings resulting from damage or injury, it’s important to keep yourself protected. Let’s say you’re a hairdresser and you used a product on a client that resulted in a severe skin reaction, you might need to provide a refund and pay for any medical bills. Similarly, if a client comes to visit you at your home and has a fall, you could be liable.