Starting a business can be an exciting time, but it can also raise a lot of questions as you start out as a solopreneur. Mainly in terms of taxes and insurance, especially if you work at home. You may already have existing home insurance, so think that additional business insurance on top of that is pointless. However, this can depend on the situation and the terms of your existing policy.

Which will lead to another question: what factors affect whether or not I need additional insurance for my home business?

Check Existing Cover

If you currently have an existing policy, then checking the terms of it is important to establish whether or not it does cover any business activities. Some home contents insurance policies do cover ‘administrative’ duties, however there are also some that will not cover anything that could be considered for ‘business uses’.

When you have a laptop, mobile phone or other important business items in your home then you might want to consider extending your policy to include ‘all risks’. This will then cover accidental damage or theft of such items, whether at home or even out and about (depending on your provider).

Stock or other business items should always be reported to your insurer, whilst also purchasing a second policy to cover it.

Explore Additional Cover

Depending on the size and running of your business activities, you may need a number of additional factors in your policy. If you have employees working for you at your home also, for example, then you will also need to take out employer’s liability insurance. By law, you need to be covered for up to £5 million as an employee can still claim against you if you go into liquidation or receivership.

Business Risks from Home

As soon as a client enters your home you could be liable for anything that happens to them; from a trip down the stairs to a burn from a tea cup. If they do injure themselves in your home, then they may be liable for any costs or lawsuits that they bring against you.

If this does occur, then it is best you are covered by indemnity insurance. As this will cover you for additional liabilities that regular home insurance does not even touch upon.

Overall, whatever policy you may have at the moment should always be explored and updated depending on your business needs. Your current insurance may cover a number of things, but not other vital elements of the day to day running of your home business. Instead of finding this out too late, it is important you are prepared for every eventuality in both your home and business.