Working from home has become a normal business plan of action across all niches. Have you considered the extra measures you can take to ensure business security? While working from home takes away the stresses of your daily commute to work, therefore minimizing the chance of accidents, you still shouldn’t cancel your car insurance. So why not consider giving your business, home and the valuables in it the same security?

In this article, we’ll have a quick look at the common types of insurance for a home-based business. Before we get into the types of coverage, let’s take a look at how to determine what type of insurance your business would need.

Evaluate your risk

Ask yourself questions that’ll help you to answer what kind of insurance your home-based business could benefit from.

  1. Does your business require special equipment to function? Such as computers, printers, laptops, machines etc.
  2. Do you offer a service where clients come to you? Or do you go to clients?
  3. Does your business include the making of products? This includes physical things such as jewellery, food, crafts etc.
  4. Does your business store a lot of data and valuable client information?

Whichever of the above is a part of your business, keep in mind some liabilities come with it.

For example, if you offer a service where you give advice, such as financial planning, and your client gets a bad outcome from following your advice, you could get sued. And unfortunately, your life insurance will not cover those costs. So what types of insurance are beneficial for a home-based business?


Types of coverage

Liability insurance

Where liability is a possibility, you’ll need to consider personal liability and product liability insurance. For businesses that offer services or goods that could have a direct impact on a customer, it’s highly recommended you cover your business (and self) with the right insurance to protect you from a costly client lawsuit.

There are a few types of liability coverage, so it’s best to speak with an insurance broker about the options best suited for you.

Equipment cover: Household insurance vs. Business insurance

If your business requires specific equipment, such as a laptop, it could be covered with your home insurance. However, not all electronics and equipment are eligible to be covered with home insurance. Check with your insurance provider if your valuables are covered and if not, find out the process and information needed to get covered.

General home insurance may not cover other work specific items such as your tools and equipment. You’ll need to get business insurance to cover more than just the basic household items.

Business interruption

Do you run an online business from home? If a majority of your business function is through your website and say your website crashes, you could be without business for 2 or more days. A business insurance policy will cover business interruption and even loss of income.

Cyber insurance

Not commonly spoken of, but a definite must-have for businesses that store a lot of data, cyber insurance covers data liability, data loss, data security, theft and much more. There are insurance providers out there who specialize in cyber insurance and they’ll give you the best insurance plan and advice for your business.


Closing Thoughts

Working from home, and running a business from home, is as important as any other. Speak to your insurance provider about the types of coverage available for your home-based business.

Just because your house is covered does not mean everything in your home and for your home-based business is covered too. If you intend to use your home as a home office to run a business, speak with your insurance provider about it! Not mentioning key details about your intentions could result in policy invalidation.

Some personal items such as laptops, equipment and other tools may be able to get included in your home insurance. Otherwise, look at all the options available to find the best type of insurance for your business. Better safe than sorry! Save on your insurance and get multiple quotes from different providers for all your insurance needs.