If you’re thinking about starting your own business and running it from the comfort of your own home, then it’s vital to get yourself the correct business insurance policy. It’s also crucial that you understand the exact difference between public liability insurance, employers liability insurance and professional indemnity insurance.
What insurance policy will I need for my business?
Whatever kind of company you’re starting, you’ll need a specially-tailored insurance policy – and it doesn’t matter that you’re running your business from home, because you’re business will still need to be insured with an appropriate business insurance policy.
First of all, you must let your mortgage provider and your existing home insurance provider that your intention is to run a business from home, because it may well be necessary for you to extend elements of your existing policy to ensure you’ve got adequate cover – your existing home contents insurance may not cover you for things like expensive new equipment you may install to be able to practice. As a general guide, though, the most common are as follows:
Professional indemnity – required if you intend to sell your knowledge or services; it will protect your business if someone claims because of financial loss sustained due to faulty advice or services administered to them by it;
Employers’ liability – this will cover your business in the case of an employee claiming because of an injury or illness sustained at or because of work;
Public liability – required if the nature of your business means you’re going to be welcoming visitors into your home/office, or if you work from other premises, like a client’s office; this type of policy will protect your business in case a client or third party claims for an injury or property damage because of your business/premises.
Is there anything else I’m covered for?
While the benefits of having a business insurance policy certainly covers those aspects mentioned above, they generally also have the added benefit of protecting you against theft,loss or accidental damage of items specifically listed on your policy, such as stock or equipment that you store within your home. But double check what’s actually covered on your home contents policy to ensure that you don’t end up over-insuring.
Also, a business insurance policy will often protect your business against income loss; for example, if any equipment is lost, stolen or damaged, meaning that you’re unable to conduct business as usual and you lose earnings as a result, you’re covered.
And lastly, if you going to be taking business equipment outside of your home or the country, you can also arrange extra protection for loss or damage that might occur outside of the home.
You will never know what would happen in your business premise – a business insurance, such as public liability insurance, can help you ensuring that everyone is safe within your business property.
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