Submited By: Richard Smithers on 08/06/2009
Is your home office insured?
Working from home has an array of advantages from flexible hours to avoiding the daily commute. However, it also presents a number of risks – you have to finance your own equipment and if something goes wrong it is you who is left out of pocket
That`s why insurance cover for your home office is crucial. Many traditional home insurance policies do not offer the right level of cover for individuals operating a business from home, which could leave them out of pocket should something go wrong. So what should you look for when choosing home insurance if you work from home?
What to look for in a policy
While you may not think that your buildings insurance premium will be affected by working from home, you should still contact your insurer to inform them that you run a business on the property because it may be deemed a greater risk. For example, if you are running a catering company from your home address then your property may be at greater risk of fire damage and your premium may reflect this.
Pay attention to the contents insurance aspect of your policy too. In particular make sure that your company is willing to cover all of your equipment such as computers, fax machines, printers, etc. Most providers will place an upper limit on the amount of office equipment you can have in a home that you can expect to be protected. So get in touch with your provider, be honest about what you do, and be prepared for your premiums to increase. Don`t be tempted to be dishonest because if an insured event occurs and you have lied to an insurer it can invalidate your claim. It`s also important that you don`t under insure in an effort to save money - should you need to make a claim you may be left out of pocket.
Also look to see what risks you are protected against. Most insurers will protect office equipment against theft, for example, but you may need to pay an additional premium for cover against accidental damage
Are there are any special cover options if you work from home
There are several specialist insurers that offer unique cover options specifically designed for home businesses. These include
- Employer`s liability insurance
If an employee has an accident or falls ill at your home you will be fined if you don`t have employer`s liability insurance. It`s a legal requirement that provides compensation if they are unable to work.
- Personal possessions cover
Can protect any items you need to take out of the home such as laptops and mobile phones.
- Public liability cover
This should be considered if members of the public, customers or clients visit you at your home. It protects you in case someone is injured by you or your business operation.
- Professional indemnity insurance
Protects your business against claims for negligence, loss of documents/data, dishonesty such as theft of a client`s money and unintentionally infringing other`s copyrights or trademarks
Can protect you against legal costs if any court action is necessary.
So which policy is right for you?
For many people that work from home, it is enough to simply add protection for office equipment on to an existing home insurance policy. If you simply work at a computer all day then your cover doesn`t necessarily need to be complicated.
However, if your work involves employees, visits from clients and customers or travelling outside the home office environment, then you may need to consider a specialist insurer that can tailor a policy for your needs.
For a standard home insurance policy, shop around for
www.gocompare.com/home-insurance home insurance using a comparison website which can compare dozens of policies with one search to help you find the level of cover at the right price.
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