Business is booming for enterprising workers setting up their own firms at home – but many are neglecting to take out the right insurance.
Around 5 million small businesses work from home at some time during the day.
Most are one-man bands with IT consulting topping the list of favourite business sectors. Other popular home-based workers include teachers; healthcare workers from physiotherapists to counsellors; freelance creatives and consultancy businesses.
Two thirds of home businesses (64%) operate from semi-detached or detached homes and half of entrepreneurs set up because they want to be the boss.
Many home businesses are too busy making money to worry about some of the finer points of self-employment – like arranging business insurance.
Working from home often means finding specialist insurance as the terms of standard home policies are voided by business use. For instance, cover is limited for IT or business equipment that may mean important items are not covered if they are stolen or suffer accidental damage.
Another key point is public liability insurance to protect employees, customers or visitors coming to your home on business against the risks of injury, illness or death.
Other specialist areas covered by small business insurance include:
- Cars and business vehicles – standard car insurance covers social, domestic and pleasure use and an insurer may not pay out if you have a crash while out on a visit to a client
- Liability cover for equipment you may take in for repairs at a home workshop
- Stock or materials in storage at home
Besides day-to-day business insurance cover, many professional who belong to a regulated body are required to have professional indemnity cover.
Many business insurance policies are bundled to provide premises, equipment and liability cover with other options as bolt-on options for an additional premium.