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Why Does Running A Business From Home Affect My Home Insurance?

This article looks at why you need to make sure you have the right business at home insurance in place.

business from home insurance

There are 2.9 million home based businesses in the UK, contributing £300 billion to the economy, and there are many benefits in setting up your business and working from home. Often working at home provides a quiet and comfortable space to focus with less distractions, increasing output and productivity. It also saves stress and money from long and expensive commutes, and crucially for those with families, it can offer the flexibility needed to manage nursery and school runs.It is also for many new start-ups and entrepreneurs a great way to save money on potentially expensive office space while things are getting off the ground.

But when it comes to home insurance, running a business from home can also increase the level of risk to your property and your contents, which is why you need to make sure you have the right business at home insurance in place.

What additional risks are there when running a business at home?

It will largely depend on the type of business you run and the types of activities you are undertaking, but essentially running a business from home will increase the risk of loss occurring to your buildings and contents. Some of the elements you need to consider when running your business from home are:

Stock

Will you hold stock at your premises? What is the value of the stock you hold? If you run a business that requires you to hold stock at your home, this can put your property at increased risk of break ins and theft. It will also increase the amount an insurer would have to pay out in the event of a fire or flood, and the resulting damage to any stock. Your insurer would need to know if you hold stock at the premises as this is not covered under standard contents insurance.

Business equipment

Again, you may have expensive or additional equipment you use for your business such as desk top computers, laptops or specialist machinery. Your insurer will need to know about these items in the event that they need replacing due to loss or damage. The inclusion of this equipment, and the acceptability to the insurer, will vary due to differing underwriting rules. Therefore, it is always important to talk to the provider about this and check that they are fully aware of the details, and that the cover is suitable for you.

Public liability

If you run the type of business that has customers or suppliers visiting, there is an increased risk of someone injuring themselves at your property. The more visitors, the greater this risk becomes. Accidents or injuries to members of the public while at your property could result in liability claims and would only be covered if you have the correct home business home insurance in place. It is advisable for your business to have it’s own public liability cover in place, as home insurance providers will often ask you to confirm you have this covered. Your home insurance will likely have limitations, exclusions or conditions will often apply within the home insurance policy.

What information will I have to provide to get a quote?

The first step to purchasing home business home insurance is to get in touch with a specialist home insurance provider. Intelligent Insurance specialise in providing business at home insurance and you can easily get a quote and buy a policy online. The types of questions you will need to answer are:

  • What kind of business you run and what it involves. For example, are you doing clerical work or production e.g making curtains?
  • What equipment you use, such as a laptop, machinery or specialist equipment
  • If you hold stock in your home and its value
  • If you have business visitors, such as customers or suppliers, and the frequency of those visits
  • If you have a separate business liability policy in place

How much is home business home insurance?

There is no firm answer to this as the price of the cover will vary and will be uniquely based on your circumstances. Home business home insurance is likely to be more expensive than standard home insurance and will depend on various risk factors including the nature of the work, business equipment, any stock you hold and whether you have regular business visitors to your home. It will also depend on the other details of your home and the cover you require.

Is anything not covered?

Home business home insurance is not the same as business insurance. Self-employed people and company owners should consider additional business insurance cover to protect themselves and their business. This may include:

Public Liability Insurance

Public Liability Insurance is a vital shield for your business, offering protection against claims for compensation and associated legal expenses. This coverage is essential if your business activities unintentionally harm someone or cause damage to their property. Not just limited to mishaps within your premises, Public Liability Insurance also extends its protective arm when you or your employees are working off-site, ensuring comprehensive coverage in all your business interactions.

Professional Indemnity Insurance

Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you’re alleged to have provided inadequate advice, services or designs that cause your client to lose money.

Employer’s Liability Insurance

This cover is compulsory if you have any employees (including any volunteers or apprentices). This is to ensure you can meet the costs of compensation for your employees’ injuries or illness whether they are caused on or off site.

Where can I get Home Business Home Insurance Cover?

It can be difficult to find home insurance if your home is also your place of work. At Intelligent Insurance, we provide competitively priced home business home insurance and ensure that the cover is suitable for your needs.

Get a quote online now, or for more information have an Online Chat or call one of our specialists on 03333 11 11 10 in our UK office.

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