Risk isn't confined to commercial business premises
If you run a small business from your home, are you protected in the same way you would be in commercial premises? Home based businesses may need specialist business insurance to protect them from the risks that every business can face.
These guidelines will give you a broad overview of the protection you should look for from your insurer if you run a home business:
1. Cover for your home office equipment
Some home insurance policies provide office cover for home workers, if yours does, always check the exclusions. You may only be covered for occasional work from home, rather than running your business from there. A specialist office insurance policy may provide additional protection for risks such as business interruption or specialist equipment.
2. Protecting yourself from problems with clients
If you're in the business of selling your knowledge or skills, you may need – in fact you may be contractually required to have - professional indemnity insurance. It protects your business from claims bought against you by clients or customers seeking damages for mistakes made by your business while providing services to them.
Some professions are required by industry regulations to have professional indemnity insurance, such as chartered accountants. Often consultants, advertising agencies and professionals in the creative industries choose to have this insurance.
3. Cover for your visitors
If customers, clients or other members of the public come to your place of work, or you go to theirs, you could consider public liability insurance. It covers you against claims for damage caused by you or your business, such as personal injury or damage to equipment. It also covers legal fees that arise out of claims you have to defend.
4. Looking after your staff
It’s a legal requirement for most businesses with employees to have at least £5 million of employers’ liability cover in place. This is designed to meet the cost of damages you may have to pay and legal fees that arise when employees are injured or fall ill because of their work.
5. Be aware of cyber and data risks
If your business holds customer data or is reliant on computer systems, cyber and data risks insurance can help protect and support your business if it experiences a data breach or an attack by a malicious hacker. It provides comprehensive cover, simplicity, reputation protection and a trusted partner in the event of a claim.