Running a home-based business can seem a great way to earn some extra money, or even to earn your living. You can be your own boss without the overheads of hiring office, retail or workshop space, and you can make your own hours in your own familiar environment, working late into the night or giving yourself the afternoon off as appropriate.
It is, however, important that you inform your insurer, or your insurance broker, about any kind of business that you are intending to run from your home, no matter how large or small a scale operation it is. This may result in an increase in your premiums, but if you use a reputable broker they will assess the risk on its own merits.
Understanding the risks
Working from home doesn’t mean you will automatically be hit by a cut throat premium for the adjustments to your existing insurance. The cost should increase if the risks that your company face are high. A very small start-up with little income or a straightforward business which uses little equipment such as a dot.com or floristry, is unlikely to create much change to your existing household policy. In contrast, if you have several employees coming to your home where you operate a catering business or you are a beautician or furniture restorer with several visitors coming to the property on a daily basis, this can be a different case.
The risks of each business need to be assessed on their own merit which can only truly be understood by talking to an expert who knows what situations have the potential to create an incident where you may need to make a claim. If you purchase a policy to cover your business online, the questions you are asked may not necessarily be relevant to your business. If your trade is very specialist it’s unlikely the questions will reveal all the risks that your company is exposed to and you could also be provided with cover you don’t necessarily need. Talking to an expert who takes the time to get to know your company on an individual basis, will help to avoid these issues and prevent you ending up with a premium that doesn’t justify the risks you truly face as a business owner.
Don’t get caught out
Whether you are just taking in a lodger, working as a consultant, selling homemade goods or running any other home business, big or small, informing and working with your insurance broker is essential. The alternative is that if anything happens and you do need to claim on your home insurance – even if the claim isn’t business related – then the fact that you haven’t informed your insurer will almost certainly be used to invalidate your claim.
Talk to us today about your insurance needs by calling 01603 218000.