Working From Home and Insurance

For many the very thought of self employment has always remained an attractive proposition, and in recent years this fact has been substantiated by the increase in the number of people attempting to start their own business. For all of these businesses, especially those in their fledgling stages, the onus will very much be on minimising costs and overheads to give the business the best chance of success. In order to eliminate what is possibly one of the largest overheads many start-ups begin life as home based businesses, therefore eliminating the need to rent expensive office space in which to work from. This has numerous benefits as it not only eases the financial burden on the business in the early years, but also enables the owners to commit more time to their business without working long hours away from home, which affords them the luxury of being able to nurture their business as well as spend time with their family.

Another reason we are seeing more businesses flourishing in the home environment is possibly attributed to the Internet, especially since broadband has become more pervasive and prices have started to tumble. For any business relying heavily on communication, marketing or advertising it means that the playing field is now a level one, and they, along with many others working from home, can compete quite effectively alongside the big corporations in their particular field.

However, although running a business from home has a multitude of benefits there are a few precautions that every budding entrepreneur should be aware of. Probably one of the most important is finding yourself a good home business insurance policy. Although you're working in familiar surroundings and you may not have members of staff to consider, there are still occasions when even the most cautious of business owner will benefit from having taken out the relevant insurance cover.

Why You Might Need Home Business Insurance

Home business insurance can be essential for a number of reasons. These include:

1 - Accidental Damage
2 - Theft
3 - Equipment Breakdown
4 - Legal costs
5 - Business Contents
6 - Employers Liability

From an insurance perspective, working from home is considered much the same as working out of any other premise. The fact of the matter is that you are still vulnerable to many of the unfortunate incidents that are normally associated with regular business addresses. Domestic households have always been a target for the burglar, and with your home office now bristling with expensive equipment this makes it all the more attractive to the light fingered, and all the more reason for you to protect your assets with some kind of business insurance.

Replacing stolen office equipment can be a very costly affair, depending of course on how many gadgets and tools you had initially purchased for your office. But it could potentially run in to hundreds or even thousands of pounds, taking into account things like new computers, fax's and photocopiers etc. It is often this kind of equipment that plays a significant role in the smooth running and day to day operation of many businesses as well, so to lose a laptop containing important contacts, designs or projects can also cause major interruptions to a business.

Accidental damage to equipment is another thing that ought to be seriously considered. It's quite easy to inadvertently damage delicate equipment while re-arranging an office, for example. Or perhaps in your rush to answer an important call you catch a cable and bring your PC monitor crashing to the floor, leaving you with no option but to pay for a replacement out of your own funds.

Without adequate home business insurance many small companies will suffer financially through minor mishaps such as these. And for a business in its formative years this extra financial burden could put unnecessary pressure on an already overstretched budget. In light of the things that can go wrong having a good home business insurance policy does seem sensible, not only for the sake of the business but also to give the owner some peace of mind too.

Choosing Home Business Insurance

When it comes to buying home business insurance it is a topic that frequently creates a certain amount of confusion. For a start many will wonder if it is more expensive than regular home insurance. Many will also question whether their existing home insurance is sufficient to cover them for running a business from home. Although there are many other questions these two are probably the most frequently asked, and the ones we hope to cover in a little more detail.

Firstly, if you already have a good home insurance policy in place you might believe you are amply covered by this to run a business from home. However, in most cases this will not be true. Looking at the terms and conditions of the average home and contents policy you will probably notice clauses pertaining to home businesses, often stating that no cover is offered. Though, this isn't always the case as there are many different insurance companies with as many different points of view, and not all of them will frown upon it. So, with this in mind, you might actually be lucky and find your existing policy does actually cover your entrepreneurial ventures. But in all likelihood it will only be for very low risk businesses that have little in the way of equipment, staff or products. One good example of this is eBay trading where people might only sell the occasional item. It may still bring in a small income and be classed as a business, but if there are no products stored at home and little in the way of office equipment, then your normal home insurance policy may be sufficient. It's always advisable to inform your existing insurance company that you are doing this though as it will then give them the opportunity to make adjustments to your policy if necessary.

If you do happen to employ staff, have expensive office equipment around, or keep a number of products within the home then in all likelihood you will need a more sophisticated insurance policy. In order to get the correct level of cover for your particular circumstances you will need to think about what it is you actually need the insurance for. The type of business you run will also affect insurance costs and what you need to include in the policy. A business with a plethora of office equipment will probably need insurance based around equipment loss and accidental damage. Whereas a business that sells software for example might need additional cover for piracy, as the availability of cheap pirated copies of their products could seriously harm sales. In instances like this business insurance that includes loss of earnings would be extremely beneficial.

If you are employing staff you might also require employers liability insurance. Any clients or visitors that drop by as a direct result of your business will also need to be insured, in which case you should also be looking at standard liability cover on your insurance. For those working alone then business interruption might be high on the list of requirements. This would ensure your business is adequately covered during periods of inoperability. Fires and burglary both have the potential to interrupt the smooth running of any home based business, especially in the case of a fire that leaves a home uninhabitable for any length of time.

Securing Cheaper Insurance

All too often people opt for the first insurance quote they receive or simply stay with their current provider. Although this is probably the quickest and easiest way to buy insurance it is not always the best if you are looking to save money. Depending on how much time you have it's always advisable to get as many quotes as possible, five is ideal but certainly three for good measure. The key with all insurance quotes is to remember to view them on a like-for-like basis. This means that if one appears cheaper, dig a little deeper, it may be because it isn't offering you as much cover as the others are. So, compared like-for-like with the more expensive ones, it may even work out around the same price. This does mean ploughing through the policy terms and conditions carefully to fully understand what is included, but if it saves some nasty surprises in the future then it really is worth the effort.

It's also advisable to check with your mortgage provider whether they allow you to run a business from home or not, as on occasions some disallow this under the terms and conditions of their mortgage.

Getting Online Insurance Quotes

Insurance quotes can differ greatly depending upon the company you apply to, your current circumstances, and the amount of insurance cover you require. On the whole, home business insurance will likely cost more than standard home insurance. But this is because the insurance companies have to factor in any extra risks involved with your business. With a little searching on the net it is possible to find some extremely competitive insurance quotes, and as buying online doesn't require paid sales staff to finalise purchases you are more than likely to benefit from additional discounts as well. With a little time and effort you should be able to find the perfect business insurance for your home, and at the same time be confident that you got the best deal possible by comparing the quotes you received.

We've put together some of the UK's favourite home insurance providers for your convenience.

Click and Compare Home Insurance Quotes Here