Do You Really Need Work From Home Insurance Or Home Business Insurance?
In recent years there has been an increase in the number of people that now work from home, either as part of their primary job or to generate further income from a second job. This can be attributed to both the cost increase in fuel and travel in general as well as home network connectivity advancements in recent years. You no longer need to be in an office with a dedicated network link to attain fast and stable broadband services. As such many are now choosing to work from home as a more cost effective and efficient way of working.
If you are a home worker then it is highly likely that you will need a special home insurance policy. General home insurance and household insurance will not provide cover for loss or damage to business equipment or personal liability whilst working from home. It's important to check your current policy carefully for work from home insurance clauses, as not declaring your working status may mean your business equipment is not insured and may also mean that your home insurance is invalid. So check if home business insurance is part of your current policy with particular focus on the exclusions that may apply.
In many cases home business insurance is not included in your home insurance policy schedule so if you require home business insurance then you will need to shop around for a home business insurance provider that meets your requirements.
As well as considering your current insurance schedule and policy for home business insurance, you are likely to be obliged to inform your mortgage provider, if the property is owned on mortgage, that you are operating a business from home. Generally if you are using the home or part of your home for light admin purposes then this is considered acceptable within the terms of conditions of most standard home insurance agreements and mortgages. If you are operating at a level above this then work from home insurance is required.
Its best to consult your insurance company if you are unclear around any of the exclusions or what constitutes working from home against light administrative activity. If work from home insurance is required, then there are a number of providers in the insurance market who can quote. Whoever you choose for home business insurance, ensure that that they are underwritten by a reputable name within the insurance industry.
So the main message here is to make sure that your current policy covers the business activity you regularly undertake and also to check that you are not in breach of any policy term or condition as a result of this work. If home business insurance is required then go with a policy that covers all the types of activity you undertake and covers the equipment you use to perform this activity.
Give yourself the peace of mind and confidence that your business is covered from any incidents that can occur in the home that could affect your ability to run your business.
by: Christopher Smith