Have you recently started a new business working out of your home?
Many new businesses start from home. Working this way is more cost-effective and offers a range of benefits like not having to commute to an office each day!
However, there are still legal considerations to keep in mind even if your business is registered to your home address. The best place to start is by having the right insurance in place to protect yourself, your business, and your home.
Professional Indemnity Insurance
Most businesses will benefit from professional indemnity (PI) insurance. Even with the best intentions, mistakes can happen and PI insurance will cover you for any mistakes made or advice and recommendations that cause harm to your client’s business.
Professional indemnity insurance includes cover for legal costs and the cost of any compensation due to your client following a successful claim.
Although professional indemnity insurance isn’t a legal requirement, we strongly advise you to consider it, especially if you work in an industry where you offer advice such as accountancy and IT services.
Showing that you have professional indemnity insurance also reassures potential clients who may be looking to work with you.
Employer’s Liability Insurance
From the moment you employ your first member of staff, you will need Employer’s Liability Insurance (unless you are only employing closely related family members) even if the employee is working out of your home.
Employer’s liability insurance is required whether your staff are full-time, part-time, casual workers or contractors. It covers you for compensation claims made against your business if an employee is injured, gets ill or has their personal property damaged while working for you.
Not having employer’s liability insurance can cost you up to £2,500 per day in fines.
Product Liability Insurance
Does your home-based business sell products? If so, there’s a possibility that your products could cause injury or illness to a customer, or damage their property. If this happens, you’ll need to protect yourself and your business against the financial costs of any claims and the way to do this is through Product Liability Insurance.
Public Liability Insurance
Do you have customers visiting your home? Or do you go out to see clients at their home or place of work? If the answer is yes, you need to consider public liability insurance.
If a client is injured or has their personal property damaged while visiting your place of work, or through you visiting them for work purposes, they can make a claim against you and may be awarded compensation.
Public liability insurance covers you for any legal costs and compensation payments that arise as a result of a successful claim against you.
You might already have contents insurance for your personal possessions, but if your home has now become your office, there may be additional items to include on your insurance policy. This could include computers, laptops, and other office equipment.
Contents insurance covers your possessions for loss, damage, or theft and you can even protect items that you take out of the house such as laptops and mobile phones.
Personal Accident Cover
Many business owners rely on their business for an income but what happens if you’re ill or injured and cannot work? Should the worst happen you need to plan for loss of income and any medical costs associated with your accident.
This is where personal accident cover can help. It’ll ensure you have money for day-to-day living costs while you are recovering.
Business Insurance from The Bateman Group
We’ve been providing independent financial advice and insurance services to a prestigious customer base of individuals, and private & public companies since 1967. Get in touch with our experts to discuss the insurance needs of your home-based business.