Why homeworkers need business insurance
The last few years have seen a huge rise in the number of people setting up business from home. With tens of thousands of professionals made redundant and new job opportunities few and far between, around 500,000 people will set up their own business this year, many of which will start at home (source: fsb.org.uk).
Whilst working from home reduces costs and improves flexibility for business owners, thousands of home based businesses are operating without vital insurance cover that could save them from financially crippling payouts in the event of a claim. Here are 5 common misconceptions that highlight the importance of insuring your home based business.
“Home based businesses aren’t big enough to need insurance”
Regardless of the size of your business, without the right insurance cover, you could be exposed to financially crippling payouts if something doesn’t go to plan. Professional indemnity insurance can provide cover for mistakes you make in your work, such as incorrect advice you provide to your client, and public liability insurance can cover against damage or injury you cause to third parties. Generally, both are regarded as vital cover for new and growing businesses.
“Household insurance policies cover home businesses”
Home insurance policies rarely include cover for mistakes made in work for a client or damage caused to a client’s property, and they don’t always cover expensive business equipment (such as laptops or mobile phones) against accidental damage or theft. Arranging specialist homeworkers insurance could cover your business against these eventualities.
“Homeworkers don’t need insurance to be awarded large contracts”
With more and more organisations wanting proof that if things go wrong they are able to reclaim any losses, it is common practice for new customers (particularly public sector organisations) to request proof of insurance before a contract is signed. Without insurance in force, you could struggle to win important contracts.
“Home based businesses can survive interruptions”
An unforeseen event at your home could cause chaos for your business, whether it’s a flood, fire or other disaster. While your household insurance policy might cover the costs of repairing your home, what would happen to your business? Arranging business interruption insurance can cover your business against loss of income (or an increase in trading expenses) if something unexpected happens and you can’t work from home.
“If I employ a part time member of staff, I don’t need employer’s liability insurance”
If you employ any staff, regardless of whether they work part time, full time, from an office or from their own home, employer’s liability insurance is a legal requirement. Without it, you could face a fine of up to £2500 a day. As with all insurance, read the policy terms and conditions to make sure the cover is right for your business.
Markel Direct offer policies specifically designed to cover home based professionals, homeworkers and home businesses. A range of covers are available, including professional indemnity, public liability and business interruption, with premiums starting at just £5 a month. Find out more about our homeworkers insurance or get an online quote in 90 seconds.