How to Choose the Right Home-Based Business Insurance Coverage

If you’re planning to set up a new business from home, or switch to home working after renting office space, you need to ensure you have the right insurance coverage in place. You should not assume your home and contents insurance will cover your business needs.



To get started, consider the following areas.

Your assets

Your Home and Contents insurance policy may cover some of the items you use to run your business, for example, your policy's general terms might cover a laptop or computer.

However, Home and Contents insurance policies aren't designed to cover business assets. Your policy limits may not meet the value of your business equipment. You may also not be allowed to add business items to your coverage.

Consider your business assets and their value to your business. You may need to insure home office equipment such as computers, printers, copiers and scanners against fire, theft and damage. If you keep stock or tools in or on your property, they also need to be protected.

If you use your car as a company vehicle, you will need insurance that covers business use. If you take equipment such as laptops and phones out of your home office, customer sites or on business trips, you should consider a policy that covers items outside of your home office.

Your staff

If you employ staff, you’ll have an obligation to provide Workers Compensation coverage. This insurance protects employees financially, should they sustain an injury or illness resulting from the work they do for you.

Bear in mind that this obligation doesn't just apply to full-time salaried employees. You may need to cover employees who are on a part-time, commission-based or casual basis. In some cases, you may need to cover contractors and sub-contractors if you use them. 

Your income

If something goes wrong with your business, you don't just have to think about how you'll pay to repair or replace your assets, you’ll also have to work out what will happen to your earnings. For example, if you have a fire at home and your computer is damaged, you may not be able to work until you buy a new one and transfer its data from your backup.

This is where you may wish to take out a policy to protect your income. Business Interruption insurance helps you cover lost earnings if your business can't trade. 

Your liability

All businesses require different kinds of liability insurance. For example, you should set up a Public Liability policy if anyone is likely to visit your home office. If they have an accident during a visit, this insurance policy will pay for your legal and compensation costs.

The type of business you do may require extra liability coverage. If you give professional advice as part of your work, you may wish to consider Professional Indemnity insurance. If you sell products to your customers, Product Liability covers you if one of your products injures someone or causes damage to their property.

To find out more about home-based business insurance options, contact Westralian Insurance. We are a team of experienced, fully qualified insurance brokers. With our help, you can work out exactly what coverage you need and find policies at the right price.