Do I need business insurance if I work from home?
No commute to work, no renting of expensive workspace, no hassle.
There are plenty of benefits to running your business from home, particularly in the early days when cash flow is your priority. And there’s the added bonus that your home insurance policy will cover your business too, right? Well, the answer is, probably not.
A working from home business insurance package protects you from many business-related mishaps that a standard homeowner’s policy won’t. It’s always best to check what you’re covered for with your current home insurance provider. Give them a call and let them know that you run your business from home - because failure to disclose this could invalidate your policy. This would leave you out of pocket if you needed to claim, making the working from home option not quite so cost effective after all.
As a home-based business, you should consider the following covers which make up working from home business insurance packages.
Many home insurance policies automatically cover up to £5,000 of home office equipment, but If you use any computing or specialist equipment to run your business, you may need more.
If people visit your home for business purposes, then you’ll need public liability. Even if they only enter your premises briefly, accidents can happen. Public liability insurance covers you for compensation and legal fees if a member of the public sues you for injury or damage to their property. So, if a customer comes into your home to collect a cake you’ve baked, or a courier drops off some flyers you’ve designed, public liability protects you if they slip, trip or fall.
Goods in transit
If you deliver your product to customers, or you collect stock from suppliers, there’s a chance that items could get lost or damaged during the journey. Goods in transit cover limits the financial impact that such an event would place on your business.
If you sell products, then you should consider product liability insurance. It will cover the cost of compensation claims if someone is injured because of a product bought from you. You don’t even need to have made the product to be liable in some circumstances.
This is a type of business insurance that must be held by law if you employ others. If you don’t have employers’ liability in place then you could be fined up to £2,500 a day, so it’s a costly mistake to make. There are some companies that don’t need insurance in place, including family businesses if all employees are closely related to the business owner, so make sure you check whether you need cover.
Some other bits to consider
As well as the protection that a working from home insurance package offers, it’s worth checking whether you need any additional business insurance. If you give advice or provide a service, then professional indemnity may be needed. If you’re accused of making a mistake by a client, professional indemnity will cover legal expenses to defend a claim and rectify the mistake made if necessary.
Just as you need to check whether your home insurance covers your business needs, you should also upgrade your car insurance so that you’re covered for business use purposes. Finally, you may want to consider if working from home is the right choice for you and your business.
Need Advice or support to find the right insurance for your business?
If you’re not sure what you need or want advice on the levels of cover for your business, call to speak to specialist insurance advisers.
Lines available from 9am to 6pm Monday to Friday
Insurance you can trust
To offer this insurance service, we work with Arthur J. Gallagher Insurance Brokers Limited, one of the UK’s largest insurance brokers. Arthur J. Gallagher can provide you with impartial, expert advice and will search a panel of insurance providers for quotes tailored to your business’ insurance needs.
Insurance covers are subject to the individual terms, conditions and exclusions of the insurer providing them. Always review the policy documentation supplied during the quote process to ensure you have the cover you need.
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Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
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