Whether you’re baking bread to sell at the local market, auctioning online and keep your stock in your private property or using the spare bedroom as your office, there are many things to consider when running your business from home.
One of the issues often overlooked by small business owners – especially in the early days – is business insurance. Your home insurance is very unlikely to cover business related losses, meaning that your finances could be heavily hit from one day to the next.
Anthony Johnson, Partner in Insurance quote 365, explains the many pitfalls of not being insured: “If the thought of your home flooding, being caught in a fire or being robbed sounds a bit far-fetched, you only have to look at the news recently, we have been hit by bad storms, homes and businesses all over the country have been affected, a home insurance policy will provide you with cover for any personal belongings but will not cover you for business losses. If you’re selling, distributing or manufacturing products, you should consider taking out our liability insurance, which will cover you if that product were to cause loss or damage to a member of the public, for example if a customer had an injury even if using the product as advised, or a catering company were to give a wedding reception party food poisoning”.
Aswell as insuring against these risks, there are other areas of cover which can be taken to try and avoid these issues, explains Anthony. “For example, if you have spent a lot of money on a laptop, or any other home office equipment keep the empty packaging out of site”.
You also need to concider business interruption cover. One of the major reasons for this cover is if the worst happens and your business suffers, business interruption cover can protect your income whilst you get back on your feet. This is especially important when the income from your home business is an major part of the household cashflow.
Starting up is tough for small businesses, and often running a business from home is a way of keeping your costs down, so these additional expenses can be hard to come to terms with, but the peace of mind which comes with having adequate insurance is worth the extra expense, and you needn’t think the cost will be too high.
When you consider taking out insurance, it’s important to consider the severity of the potential claims, rather than the frequency, Liability claims can reach tens or hundreds of thousands of pounds, so as a small business owner, would you have the money to compensate the individual? It may be that the actual stock and contents amounts to a figure you could replace but there are certain types of claims which unless your business has reached a large size, you wouldn’t be able to cover.
Insurance can seem like a minefield of information, but you can find out the basics of what’s on offer by checking out our website. Anthony advised small businesses to go to www.insurancequote365.co.uk,where they can find more in-depth explanations of the different types of cover and the number to call if you’d like to speak to a specialist team.
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