Insurance for Home Business
Are you a home business owner looking for business insurance?
According to the Australian government website designed to help business; www.business.gov.au, "home-based businesses are a large part of the Australian business community, with nearly one million people running a business from home."
The section of the government website for business titled insurance for home-based business advises home business owners:
"it's important to understand that your existing home and contents insurance may not cover your business activities or your clients in the event of an accident or illness. This is a common mistake for many businesses and can make you personally liable if an accident occurs."
So if you are one the one million home based business owners its SMART that you are looking for insurance.
You may also have come to the SMART place to get suitable and affordable cover as we help owners of home based businesses find appropriate and competitive cover every working day.
While every home business is slightly different, our team of friendly insurance brokers specialise in small business insurance and may be able to help make a complex and risky process easy and affordable for you.
Types of home based businesses we may be able to assist with insurance:
Below are some of the home businesses we may be able to assist with cover:
- Administrative support services
- Answering & reception services
- Balloon artist
- Cosmetic sales
- Costume jewellery maker
- Dog walking
- Dog grooming
- Graphic designers
- Online shops
- Picture framer
- Pet care
- Web developers
Your occupation or industry NOT listed above?
A specialist small business broker may still be able to assist you.
Talk your SMART business insurance broker on 1300 542 573 for more information about suitable covers for your home business activities.
Types of insurance cover for home business owners to consider:
- Public liability insurance – can protect you to any harm form customers and suppliers visiting your home.
- General property insurance – can cover damage or loss to and business equipment such as computer, office furniture, mobiles , tools or stock.
- Business insurance pack – you may be able to combine multiple covers in a specially designed policy for small business. Ask your SMART broker for details.
- Workers compensation – cover for employees
- Marine cargo – cover if you receive or send goods via post or freight
- Professional indemnity – if you provide professional advice or a fee.
- Cyber insurance - against claims for customer data and privacy breaches
- Commercial motor – if you use vehicles for commercial purposes
- Personal Accident and Sickness – to protect your personal income if you can't work for an extended period.
What Type of Insurance Do I Need for a Home Business?
Running a home business can be a rewarding way of earning a living. It gives you the freedom to work as much you want, have a more flexible schedule, avoid the commute and not have to answer to anyone except your clients.
You need to keep in mind, however, that the protections that you took for granted while working for an employer are now your responsibility with the most significant being having appropriate business insurance in place for when things go wrong. No matter how careful you, are an unexpected event could put your business and livelihood in jeopardy.
Imagine, for example, that your home is burgled and you lose your work computer or phone; a client visiting your home office trips over a household item and suffers an injury or another client decides that you have given them substandard work or advice and decides to sue you for the losses they claim to have suffered.
Many people are unaware that most home and contents insurance policies do not cover equipment or stock that is used for business purposes, so it is crucial to get appropriate insurance cover.
Could your business absorb a significant loss or claim for compensation in any of the above circumstances? For most small businesses it would be disastrous and, in the worst cases, result in significant financial loss or even personal bankruptcy.
While it will depend on your circumstances and the type of business you are running, most home businesses may need the following types of insurance:
- Public Liability Insurance - If you are receiving clients, members of the public or your suppliers in your home office (or while visiting them at another location) this type of insurance may protect you if they suffer injury or property damage that are shown to have occurred because of your business activities. While such events may seem unlikely when they do occur, they can result in payment of significant monies to defend claims or compensation if you are found to be at fault.
- Property and Contents - This type of insurance covers the tools, equipment and stock that you need to run your home business. It may provide cover for loss or damage to items such as business office equipment, stock, machinery and other items you use for your business. Depending on the policy terms it may cover you for theft, accidental loss or damage to these items up to a defined upper limit. Some types of this insurance, called Portable Equipment or General Property insurance, may also cover you for portable items such as a laptop or mobile phone that are needed for your business.
- Personal Accident and Illness - Because running a home business means you are self-employed, you no longer have access to sick leave or other provisions for when you are unable to work. This type of insurance may pay part of your income when you can't work.
- Business Interruption - This type of insurance may cover you if your business suffers losses as a result of an insured event occurring (such as property damage by storm, fire, busted pipes, malicious damage or theft ) that prevents you from conducting your business as usual.
- Cyber Liability – much business today is conducted over the internet in some shape or form. As a result, you need to consider the consequences of your business information or client data being compromised and the impact this could have on your business. This type of insurance may protect your business from the legal costs and potential compensation claims that could arise if you suffer a data breach. It may also include coverage for cyber business interruption costs, consequences of client data being compromised, forensic investigation of the breach, costs of data recovery, suffering extortion, fines or penalties that are levied or legal costs associated with civil proceedings that are taken against your business depending on the terms of the policy.
How Much Is Home Business Insurance?
Home business insurance is relatively inexpensive compared to the amount of coverage provided and the peace of mind that it offers should things go wrong. The specific cost to your business will depend on its activities, the types of insurance policies required and the amount you want to be covered for. Many insurance providers offer a home business package that bundles the policies described above and which is less expensive than buying them individually.
The best thing to do is to speak to a smart business insurance broker who may be able to provide you with a quote based on your circumstances and the type of business that you operate. Remember to clearly explain all of the circumstances of your business and the activities involved in running it to ensure you get the best coverage possible.
What does Home Business Insurance Cover?
Ideally, and with the right mix of policies in place, home business insurance should provide you with sufficient coverage to overcome any worst-case situations that could threaten your business. You must think carefully about all of the risks your business faces (no matter how unlikely they may seem), the types of clients you serve and the potential losses you could suffer if the worst were to occur.
Your insurance broker can help explain the specific terms of any policies that you are offered and, most importantly, any exclusions that apply - that is events or circumstances which the policy does not cover.
You should have an open and thorough discussion with your insurance broker about your business, the risks it faces and the terms of specific policies that you are offered to ensure you receive suitable coverage for your home business.
Trying to work out what insurance your home business needs?
We may be able to assist.
Wherever you are in Australia when you contact SMART business insurance, your friendly business insurance broker may be able to help answer your questions and find you suitable and affordable insurance for your home based business.
1300 542 573
TALK to a SMART Business Insurance adviser
SMART business insurance pro tip:
Document back up for home based businesses:
Back up documents at least daily on the cloud. Don't be cheap. Back it up a local Australia data centre; if possible ; within an hour's drive of your home based business; so that if something happens to your data you can get hold of it easily and return back to work quickly.
Home Business Insurance quotes
TALK to a SMART Business Insurance broker on 1300 542 573 or email us at email@example.com for suitable and affordable insurance quotes for your home business.