Run your business from a home office? Need the right insurance?
More and more UK citizens are deciding to start home-based businesses. Whether it's the call of entrepreneurship or the convenience of not commuting, this trend is flourishing. Home offices can be everything from consultancy firms to graphic design studios, tech start-ups to online retail shops. However: although running a business from your home provides a multitude of benefits, it does come with its fair share of risks.
What kind of risks are run by those running a business from a home office?
Physical Risks
Let's start with the physical risks. A home office has it's share of equipment like computers, printers, specialised tools, and inventory. These are prone to a range of risks such as damage, theft, or natural disasters like floods or fires. What would happen if an unexpected fire destroyed your expensive equipment or if a burglar decided your tech looked inviting? Replacing these could have a massive impact on your wallet.
Legal and Financial Risks
Then there are legal and financial risks. If you meet clients at your home, there's always the possibility of an accident. Slip-and-fall incidents could land you with a hefty lawsuit. Likewise, if your business operations negatively impact your neighbours, they might decide to take legal action against you.
Interruption to Business
Another significant risk comes from business interruptions. Unforeseen circumstances can disrupt your operations. Let's say a tree fell onto your property during a storm, causing significant damage (unlikely but it does happen!). Whilst the tree is being removed and the damage repaired, you might not be able to work, leading to a loss of income.
The Role of Insurance in Risk Management
Insurance steps in to handle these risks and allows you to concentrate on what you do best – running your business. When you have the right kind of insurance, you can face potential problems without the dread of a potential financial catastrophe.
Finding Affordable Home Office Insurance
Home office insurance doesn't have to break the bank. There are plenty of affordable options out there so why not let members of a whole panel of specialist insurers send you quotes?
What kind of insurance could you consider?
You may well not need all of the following, but depending on the type of business you do they may be worth thinking about:
Home Contents Insurance
A traditional home contents insurance policy might cover equipment like computers and furniture. Yet, it's always important to double-check as some insurers don't include business equipment as standard. Furthermore, this type of insurance is unlikely to protect stock, cash kept on premises or cover you for business interruption.
Business Equipment Insurance
To make sure your work equipment is fully protected, you could consider business equipment insurance. This typically includes items like computers, printers and other machinery you need to do your job.
Public Liability Insurance
If your home business has visiting clients, public liability insurance is a good shout. This kind of insurance will safeguard you if a client or a visitor gets hurt on your property.
Professional Indemnity Insurance
For those offering professional services like consulting or financial advice, professional indemnity insurance is worth thinking about. This offers protection if a client claims they've suffered a loss because of your advice.
Business Interruption Insurance
To safeguard your business operations from unexpected interruptions, consider business interruption insurance. This can be a lifesaver if a natural disaster or major repair makes it impossible for you to work for a while.
Tips to Save on Your Home Office Insurance
Bundling Policies
Insurance providers often provide discounts if you bundle multiple policies together. For instance, you could bundle public liability and professional indemnity insurance.
Choosing a Higher Excess
If you're comfortable with a higher risk, you could opt for a higher excess. The excess is the amount you're willing to pay towards a claim before the insurer starts to contribute. By accepting a higher excess, your premium will typically be lower.
Regularly Review Your Policy
It’s good practice to review your policy at least annually. Make sure you're not paying for cover you no longer need or missing cover for newly acquired assets.
To conclude, risks associated with a home office can be mitigated effectively with the right insurance policy. Don't let a lack of insurance be the downfall of your dream venture. Choose a policy that suits your needs and focus on taking your home-based business to new heights.
