Running a business from home is becoming increasingly popular. Because there is no expensive office space, no commuting and flexible hours, this way of working is on the rise. Even working in the comfort of your own home, there are some legal requirements to follow. Having the correct home business insurance in place is vital, but what cover do you really need?
Professional Liability Insurance
Sometimes known as professional indemnity insurance, this cover is not always a legal requirement but often worth considering. It’s a type of home business insurance that will protect you if you make a mistake or provide inadequate service. Because industries such as accountants, IT professionals and designers deal primarily with skills and knowledge, this insurance is good to have. Some clients may only agree to work with businesses that have professional liability insurance in place.
Public Liability Insurance
This insurance will protect you if a client suffers damage to their property or injury because of your business. It will cover the legal costs that could be incurred if a claim is made against you. When you work from home, this is necessary if you have clients come to you for meetings or consultations. Also, if you regularly visit clients’ homes, then you will require this policy.
Home insurance is often broken down into buildings insurance and contents insurance. Building insurance covers damage to the property itself, and it is likely you will already have this because it’s part of a home insurance package. If you are using your home as office space, you may need to check your existing policy as some won’t cover for this. Contents insurance covers the possessions within your property. Again, it is likely you already have this, but you may need to amend this to cover business devices.
Where To Get Home Business Insurance
If you are confused about which types of insurance you will need for your home business, then our expert team can help. At Just Quote Me, we are specialists in insurance and can help you find the best options for your unique needs. Find out how much your cover will be by filling out our free quick quote form.
The Office for National Statistics report that the number of self-employed people is increasing massively year on year. The number of people self-employed in the UK increased from 12% of the labour force in 2001 to 15.1% of the labour force in 2017.
While many self-employed people made the move due to lack of job availability, almost all are reaping the benefits of being their own bosses. It gives you the opportunity to have full control over your career, but it also comes with a range of risks you cannot ignore. With no protection or support from an employer, self-employed insurance is more important than many people realise.
What is Self-Employed Insurance?
Self-employed business insurance policies protect you and your business financially in the event of an unexpected scenario. It protects you should the worst happen. Dependent on the cover you opt for, it can protect obvious things such as damage to your property. It can also cover less obvious things such as financial protection should your advice cause loss to your clients. If you work for yourself then it is likely you will need some kind of self-employed insurance. What you need will depend on factors including:
- Whether you have any employees
- Whether your business has shareholders
- If your business has a high volume of valuable assets
- The type of business you run
- Whether you sell or create products
- Whether you give out advice or information as part of your service
These are just some of the factors which will influence the kind of self-employed insurance you may need.
Protecting your Business against Liabilities
The most important kinds of insurance for a self-employed person relate to liabilities from clients and other third-parties:
Professional Indemnity Insurance
Professional indemnity insurance or professional liability insurance is essential if you offer advice or specific services. This insurance covers compensation costs should a client suffer financial loss due to a mistake or negligence made by you or an employee. Mistakes can happen and should your advice lead to a loss for your customer, they may need to make a claim against you. Professional liability insurance provides financial protection should this happen.
Employer’s Liability Insurance
If you have any employees you are legally required to have correct insurance cover in place. Most businesses must have at least £5 million of employers’ liability cover. This insurance protects your employees and business should the worst happen. This type of insurance will ensure legal fees and compensation are covered if an employee makes a work-related injury or illness claim.
Public Liability Insurance
Not all self-employed insurance policies will include public liability insurance. Public liability insurance is not a legal requirement. However, it ensures you are protected if clients or third parties visit your business premises. There are also policies which will provide cover if you visit client’s homes or their premises too. Public liability insurance provides compensation and legal fees cover if a third-party makes an accident, injury or damage to personal property claim.
Self-Employed Insurance with Just Quote Me
Just Quote Me works with business people from all backgrounds, including many self-employed business people. We can help talk you through a range of self-employed insurance quotes so you can find the right option for your business.
A recent study carried out by Enteprise Nation found there are 2.9m “homepreneurs” in the United Kingdom, adding £40bn to local economics. The benefits for both the country and the individual from those working from home are huge. Once you make the decision to run your business from home though, there are still some boxes to tick. You need to protect your livelihood and one element of this is ensuring you have adequate home business insurance.
Protect your Home Business
Working from home is a privilege for many and something many others wish they can do. However, the semi-casual attitude involved in working from home means sometimes some of the more practical elements of running a business get overlooked. Insurance is one of these elements. Your home business needs as much protection as any other, so it requires home business insurance. Dependent on the nature of business different types of cover may be necessary but working with no insurance at all can be a real risk.
What should my Home Business Insurance cover?
Home business insurance may need to cover many different things dependent on the nature of your business. The first thing to consider is your home and contents policy, which probably does not account for any specific contents relating to your business. Some other common elements of a home business insurance policy include:
Public Liability Insurance
Public liability insurance is essential if you will have clients visiting your home. It covers any compensation which may be due should they fall ill, be injured or their property damaged while at your home. This isn’t a very common form of policy for homeworkers, but it is still worth considering.
Professional Indemnity Insurance
This is the most important kind of cover for home businesses. If your business offers advice or professional services to others, then professional indemnity insurance is vital. It will cover you should a client suffer financial or professional loss due to negligence in your advice or service.
Business Buildings Insurance
As your business is based in your home, it may be wise to consider additional buildings insurance. This ensures that your home is protected financially should a fire, flood or other natural disaster occur.
Compare Home Business Insurance Quotes Today
Just Quote Me works with many home business owners to find the right type of insurance for their needs. Every home business is different and you can compare quotes relevant to your business online using our online quote form.
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People who work from home or run their own home businesses reap many benefits. The lure of working from your own space without interruption attracts many more people each year. Your commute is no more than a few steps and you can be working productively at hours of your choosing. Home businesses are still professional outfits and should be treated as such. This means considering the legal implications of your work and the financial impact they could have. Home business insurance is an investment all homeworkers should consider.
Do you really need Home Business Insurance?
Whether you run a company from home or are self-employed you are responsible for all the equipment you use for your business at home. Home business insurance can provide cover for your business equipment. If you work from home, you need to let your home and contents insurers know too as it can impact on that policy. This makes it even more essential you look at specialise home business insurance for your business’ assets.
Home Business Insurance Cover
Most home business insurance policies will offer cover for equipment loss and damage, but you may want to consider other elements too. When creating your policy you should be able to pick and choose the elements which best suit your business and this could incorporate:
- Public liability insurance: even if you work from home you might need cover should a member of the public claim against your home business for injury or damage.
- Employers’ liability insurance: some people who work from home take on employees. This means employers’ liability insurance is a legal requirement.
- Accidental damage cover: this allows for quick replacement of damaged equipment and may be necessary if you rely on particular equipment to work and fulfil client orders.
- Commercial car insurance: while your business is based at home you may travel to visit clients. Commercial car insurance is necessary in this instance.
At Just Quote Me we work with businesses of all shapes and sizes. This includes many self-employed people and those running businesses from home. Contact us today to discuss your insurance requirements.