Home Business Insurance Types

According to the Home Business Report launched 23rd October 2014, produced by Enterprise Nation and researched and edited by Vyara Ruseva MSc (London School of Economics and Political Science), over 60% of new UK businesses are now started at home. There are 2.9 million home businesses in the UK, and seemingly more and more people are choosing to start working from home, with nearly 5 million people who would describe themselves as self-employed, of which 4.6 million have stated that self-employment is their main job occupation rather than a side business.The number of self-employed people in the UK with no other job on the side is over double the number that it was a decade ago. And the increase of those who declare themselves as being self-employed, but with an additional primary or secondary employment, is even more staggering. Within this digital age, it seems that self-employment is becoming more popular due to the ease of accessibility now. The most popular sectors for home businesses seem to be in the digital world – with creative, business services and retail and professional consulting at the height of home businesses. Followed by catering, fashion and technology.

But with the process of building a home business from scratch becoming more accessible to the general public, it’s important to educate yourself as a new home business owner as to everything you will need to do to kickstart your business. You need to read up on the different types of home business insurance, what you need and why you need it. Home business insurance really needs to be one of the first things you consider.

If you have a home business you need to have yourself covered just as much as every other business owner. Just because you work from home, doesn’t mean you don’t need protection. Most insurance companies will be able to tailor a home business insurance package that’s specific to your business requirements. It might be overwhelming, with so many aspects of running a business that you may have overlooked, but if you be honest while discussing your insurance needs you are likely to get a home business insurance that’s perfect for you.

Professional Indemnity Insurance for Home Businesses

Professional Indemnity Insurance is extremely important for any home business that provides advice or a service to paying customers or clients. If you work as a consultant or provide any service at home, anything from fixing computers in your bedroom to working as a personal trainer from your home gym, if your advice or service causes a paying customer or client to lose money, data, or suffer reputation defamation or any other damage due to professional negligence, it could be financially crippling without Professional Indemnity Insurance.

Public Liability Insurance for Home Businesses

If you have clients or customers visit you at home on business, or you visit clients or customers at their own premises, you should consider Public Liability Insurance so that you are protected against any injuries to your clients whilst they are in your home, or if you break something when visiting them at their home. Though not limited to just these two situations, it’s more common than you think for people to trip over carpeting or furniture and hurt themselves, regardless of how safe you have made your home for visiting clients. Public Liability Insurance will ensure that you are protected in such a case.

Employers’ Liability Insurance for Home Businesses

It’s certainly not the most common type of home business insurance since only 12% of home business owners have indicated that they employ at least one worker. But if you have at least one person working for you in any way, whether it’s full-time, part-time or volunteering or freelancing, Employers’ Liability Insurance is a legal requirement (unless you’re employing a close family member).

Buildings Insurance for Home Businesses

You may be able to combine your home and home office insurance. By incorporating your existing buildings insurance and your business cover, you may find that it is a far more cost-efficient way to ensure your home and business against the regular things like fires and floods.

Contents Insurance for Home Businesses

You can often extend your home contents insurance policy to also cover your business equipment and inventory. You may also be able to cover certain business equipment that you take out of the home business premises, like your work laptop or smartphone for example.

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