If you’re an entrepreneur or small business owner who operates from a home office, have you ever asked yourself what would happen if your furniture, computers and equipment were damaged or stolen? And what if a client or employee is injured on your property and files a claim against you?
The cost to replace these items could cripple a small business, so it’s important that you update your small business insurance and find out whether you are covered for this expense. Forewarned is definitely forearmed and as entrepreneurs rely on their home office to support themselves, their employees and families, it’s vital to have up-to-date home office insurance. Speak to your insurer about how to cover you and your business.
Do I need business insurance working from home?
If you work in an office space away from home, everything in your home study is covered by your home contents insurance and building insurance. However, as soon as this space becomes your primary place of business, things change, and you will need some kind of home-based office insurance.
Once you take that step you need to notify your insurance company and inform them of the change – this is key because if your home is broken into and a number of desktop computers are stolen, for example, your insurer could refuse your claim because they were not made aware of your home business.
What insurance do I need for a home office?
There are such a wide variety of businesses that can be run from home, some of which pose a higher risk than others. If you have clients coming to your home; your business needs special equipment to make or manufacture a product; you store a lot of data, including personal client details; or if you have employees working from your house, then you need to make sure you are protected from any risks and claims.
While you are hard at work building the best business you can, mistakes can happen. As a small business owner, it’s easier to focus on the task at hand when you know that any mishap is covered. It’s advisable to list all the various risk elements of your business and choose specialised policies that cover all of these, from errors and omissions liability to directors and officers liability – ensuring you have the very best office insurance should something happen.
Look for discounts on insurance bundles
When speaking to your insurance provider about your home business and the specifics related to its day-to-day running, enquire whether you can get a lower price for combined policies. For example, you might get a special deal if you combine your home contents and office contents as well as motor or building insurance. This will be a welcome saving for your small business.
Review your home office insurance every year
Your business is constantly evolving and developing, and your insurance will need to grow along with it. You might need to consider extra cover in 2018 that you didn’t need a year ago and vice versa, so take time to review the policy and speak to your insurer to keep them updated on your business’s developments.
We highly recommend business owners talk to their brokers and insurers regularly and go into detail about their risk profile to ensure they match up and are not paying for unnecessary cover. Running a home business can be risky, but if your small business insurance is up-to-date and comprehensive, then it takes some of the pressure off, leaving you with peace of mind to do what you do best.
If you need to make changes, you can manage your Budget Insurance policy online, or call and speak to someone on 0860 10 42 11.
Budget Insurance is an authorised financial services provider with FSP number 18178.