home business insurance

Help! I run a home business – what insurance do I need?

The team at Allsure isn’t a shy bunch – we’re part of numerous networks, especially with those who are creative, entrepreneurial and motivated. That means we see a fair amount of people starting or running their own businesses, of all shapes and sizes! Many of us run our businesses out of our homes, which makes for a great commute and low overheads, but it can add a layer of complexity to some things, like work-life balance and insurance. Since we’re an insurance broker that loves home businesses, we thought we’d share some of the frequently asked insurance questions we hear.

Firstly, let’s cover off the basics – your home and personal belongings might be worth just as much or more than your business assets.

What insurance do I need for my personal home and contents?

Make sure you know what you have of valuable. How much are they worth? Consider your jewellery, art work, rugs, anything special. If you’re not sure, why not invest in getting it valued? It will give you confidence in your sum insured and peace of mind.

Walk around the house and add up each room, you might be surprised at how quickly it adds up! The amount of insurance you get should account for the ‘worst case’ scenario – a total loss. There are many tools, lists and calculators you can use to assist you.

Also, consider things you have away from the home, bikes, hand bags, wallets etc.

Do I need different insurance covers for my business and business contents?

Many personal home and contents policies specifically don’t cover business contents. Never assume – read the small print or get advice from your insurance broker.

What insurance do I need for a home business?

Liability cover is probably the first priority for home business insurance. 

In addition, you should get a tailored solution that will cover:

  • Your equipment, business contents and stock against events like fire, lightning or explosion
  • Electronic equipment against breakdown (and most businesses these days should strongly consider cyber protection – if you use the internet you have cyber risk!)
  • Public and product liability to protect against claims for negligent acts (connected to your business) that cause injury or property damage
  • Personal accident/illness to provide you (or your employees) with income protection should you suffer an injury or illness that prevents you from completing normal work duties. This can help in situations where you might not have access to sick leave in the same way a larger business employee would.
  • Business interruption – how long would your home business stay afloat if you were unable to operate? Business interruption can help your business survive should you suffer a significant disruption.

What kind of risk management should I be doing to protect my home business?

First and foremost – have a plan in place. Know what you would do to keep operating and keep your business on track if something like a fire happened (the government even offers templates to hep you create a business continuity plan).  Practice good risk management hygiene like keeping back ups of your files offsite, put a security alarm in place, adopt a big dog (kidding, kind of!) use strong passwords (and change them – I know, it’s a pain but the pain of being hacked or having your identity stolen is worse!)

Another simple but important thing is to be careful of oversharing on social media – don’t say when you are away on holidays, letting the rest of the world know your home (and home business) is potentially sitting unattended.

Where can I go to get insurance help for my home business?

Talk to a broker, as we are across it all. Some direct insurers also don’t offer a full home business insurance solution, so it’s worth talking to your local insurance broker and get the advice, experience and service you deserve!