Insurance for home-based business

If you run your business from home, 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.

What type of insurance should I get?

There are many insurance policies targeting home-based businesses. Before you decide on an insurance policy, compare different providers to select what's best for you.

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)
  • asset 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 and your insurer have agreed to cover them.

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