As a home-based business you need to make sure you have the correct level of insurance to protect yourself, your business and your home. It's also important to understand that standard homeowner policies do not generally provide cover for home-based business activities.
When looking at insurance providers, consider the following types of insurance:
- public liability cover for persons visiting your business at home (e.g. customers and suppliers)
- insurance of business equipment, inventory, tools of trade, office furniture or computer equipment
- workers' compensation for any employees working from your home
- fire, storm and theft cover for the loss of any stock and equipment
- professional indemnity insurance if you're in a service industry, especially if you're contracting to government
- loss of income due to personal accident or illness
- costs arising from interruption to your business
- marine policy if you send products via freight carriers or post.
It’s important to note that many policies don't cover tools of trade, office furniture or computer equipment used for your business, unless you've specifically advised your insurer and they've agreed to cover you.
What to do...
- See our Insurance topic for more general information about insurance.
- Read about Types of insurance.
- Compare insurance companies and brokers - search our directory for links to insurance and broker associations, or check the phone book.
- Contact your industry association or professional body to find out if they can help - search our directory for a link to your industry association.