What Insurance Policies Does a Home-Based Business Need?
As more people begin working from home rather than heading to the office, the common challenges of running a business from domestic premises are becoming a bigger talking point.
One of the most common questions would-be home-workers ask is whether or not they need specialist insurance, or any additional policies, to cover their operations. Here is a look at the facts of the matter and the hurdles you will need to overleap to get adequate protection in this context.
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The problem of complexity
The biggest barrier facing home-based business owners is that unless you are an insurance expert or have extensive experience in this area, the whole process of getting the right cover can be overwhelmingly complicated.
Thankfully services like PolicyScout make it simpler to pinpoint insurance for all situations, including working from home. Most importantly, by breaking down the barriers which stand between you and suitable insurance, you will avoid the worst-case scenario of procrastinating over procuring cover and suffering from a disaster in the interim.
Considering your existing cover
Whether you own or rent your home, you may already have a policy which delivers an appropriate level of cover as part of your existing home insurance deal.
This is usually only relevant for people who work from home and require very minimal equipment to fulfill their professional obligations, such as a laptop, a smartphone and a basic desk setup.
So long as the items you use for business purposes belong to you and are valued within the total of your contents cover, this may be enough. However, this will not fit everyone’s needs, so further scrutiny could be required.
Get a business-specific home insurance policy
A number of providers offer insurance policies which are specifically tailored to those running businesses out of their homes, bringing with them the benefits of having additional protections for any equipment you use for your work, as well as extra liability cover should that be necessary.
At the root, these in-home business insurance bundles will still be fairly close to standard home insurance, while also being closer to fully-fledged business insurance policies. If your business is handled almost entirely digitally, or your in-home operations are fairly limited in terms of the equipment involved, this could be the right choice.
Embrace an all-out business insurance product
One of the main reasons that you may need to consider getting an unmitigated business insurance policy, similar to the kind you would need if you had your own separate commercial premises from which to run your operations, is if customers need to physically visit your home.
This can apply to everyone from masseuses and makeup artists to craftspeople and psychotherapists. The liability coverage you receive will give you peace of mind during customer visits, while also meaning that you can focus on growing your business.
As mentioned earlier, if you are still uncertain about which kind of cover you need for your in-home business, seek expert advice rather than trying to find your way through this complex topic unassisted.