Home Business Insurance

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.

What types of Home-Based Businesses may we be able to assist with insurance?*

Below are some of the home businesses we may be able to assist with cover:

• Bakers
• Administrative support services
• Answering & reception services
• Balloon artist
• Beauticians
• Consultants
• Cosmetic sales
• Costume jewellery maker
• DJ
• Dog walking
• Dog grooming
• Engraving
• Freelancers
• Graphic designers
• Handyman
• Hairdressers
• Online shops
• Picture framer
• Pet care
• Photographers
• Trades
• Web developers
• Writers

Your occupation or industry NOT listed above?

Don’t worry

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.