Is my home-based business covered by my home insurance?
Working from home is becoming more and more popular in the UK, and it’s easy to see why. With no commute, lower overheads, flexible hours to work around childcare and a better work-life balance, it’s an ideal choice for many of us.
But, there are drawbacks. You can’t assume that if something goes wrong you’ll be covered by your home insurance. Some policies do cover business claims but not necessarily for the level or type of protection you need for your specific business. It’s important that you check your policy thoroughly to see what it covers but it’s likely that you’ll need business insurance for a home-based business. Without adequate working-from-home insurance, you could be putting your business at risk.
Types of business insurance cover for a home-based business
We have a range of home business liability insurance products for you to choose from, so you can have peace of mind that your business is fully covered. Here are a few types of cover that your business may benefit from if you work from home:
Professional indemnity insurance
If a customer claims there’s a problem with advice or a service you’ve provided, professional indemnity insurance, also known as PI or indemnity insurance, can help to protect your business against the cost of compensation pay-outs and legal action.
Depending on the industry you’re in and the type of work you do, there might be an expectation that you have indemnity cover, it may even be a contractual requirement. But really, any small business that provides a service can be at risk of costly and disruptive claims.
Our PI policies cover issues including negligence, defamation, breach of confidence and infringement of intellectual property rights. And we have tailored policies for a number of different trades and professions.
Find out more about this type of cover with our Indemnity Insurance FAQ Guides
Public liability insurance
If you interact with customers or members of the public in a business capacity, either in your home or elsewhere, another home-based business insurance product you could consider is public liability insurance (PL insurance).
PL insurance for home-based businesses can protect against claims made against you or your business for accidental bodily injuries or property damage. So, if a client slips on a wet floor while at a business meeting in your house or you spill a cup of coffee on a sofa at a customer’s home, the policy could cover the cost of settling or defending the claim.
Employers’ liability insurance
It’s likely you work from home on your own, but if your business has any employees, including freelancers, volunteers and students, it’s a legal requirement that you have employers’ liability insurance with at least £5 million cover.
There are a few exceptions to this rule, such as, if you’re not a limited company or your employees are close family members. But even in these circumstances, it could be worth thinking about adding it to your home-based business liability insurance policy.
If an employee makes a claim against you because they’ve been injured or have fallen ill because of the work they’ve done for you, employers’ liability insurance can cover the cost of compensation claims and legal costs.
Find out more about this type of cover with our Employers’ Liability Insurance FAQ Guides
Home office insurance
When working from home it’s important that your contents insurance policy covers your home office furniture and equipment. Many policies won’t cover items used for business or professional purposes. So, it’s always worth checking what’s included on yours.
Our home insurance includes home office cover as standard and, if you're unable to work from home due to a power failure, for example, we can help to cover the increased outgoings to keep your business running.
Find out more about Hiscox Home Office Insurance
Cyber and data risks insurance
Nowadays, most businesses are run using computers. So, it’s likely that you store personal information of customers, suppliers and employees digitally, take card payments, make electronic payments and have a website. All of this makes you a target for cybercrime.
Cyber and data risks insurance can cover your business if you are hacked or suffer a data breach and can provide support to help your business get back up and running after an attack. Our policies include free training and cover both current and future risks.
Personal accident insurance
When your business relies heavily on you, it’s important to consider how it would cope if an injury left you unable to work for a long period of time. Personal accident insurance could pay-out a lump sum or weekly instalments to help cover your loss of income during the time you are unable to work.
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