With unemployment escalating the result is that more and more people are working from home, or are gearing up toward working from home. Home based businesses vary tremendously and range from craft type products to garage “manufacturing” workshops and many computer professionals and consulting services are also moving to home based offices. Looking at a home based business in the legal sense, they aren’t any different from any other business as owners still have to pay taxes, put together legal structures and interact with customers.

Yet a key item often overlooked by home based businesses is insurance, and the answer is a work from home insurance policy which is required over and above a normal homeowner’s policy.

Specialist insurance

Home business insurance is specialist insurance cover. Without it your business and livelihood may be at risk and your household insurance may not provide you with cover against damage and loss to your business equipment nor can it cover you for liability issues that often arise in business environments. Another consideration and something that may need to be checked is the fact that your standard household policy may be in danger of being invalid if you do not have work from home insurance cover.

What should be covered in your work from home insurance?

1. Contents and buildings

Content insurance usually covers anything your business requires to function, such as loss or damage to office equipment used the premises which include computers, telephones, copy equipment, office supplies and even stock. Mobile items such as laptops or mobile phones may also be covered under an ‘all risks’ clause.

Contents insurance will not usually cover the actual building.

2. Liability cover

Working from a home based office does not relieve you of liability toward customers, products or services and staff, if you employ any. As a business owner you are still liable for the safety and protection of anyone on your premises or anyone dealing or handling your products. If anyone suffers injury, illness or loss of their possessions while in your employ or on your premises you may be faced with a financial obligation toward them and this is when public liability insurance and employers’ liability insurance covers may be a wise choice. The latter is, in most cases, a legal requirement for any business, but there are exceptions.

Liability cover also extends to legal fees and will offer you cover in the event you are caught up in litigation and are responsible for expensive legal costs as a result, while a professional indemnity can offer you cover against such things such as theft of clients money, loss or damage to data or documents belonging to your clients and also infringement of intellectual property such as trademarks or copyrights. Professional indemnity may also cover you against negligence or errors on your part toward your client.

Work from home insurance while being more specialised than household insurance, offers home business owners complete business insurance cover that is capable of coping with any and all business related issues.