When you’re just starting out every cent counts, which is why many small business owners choose to launch their business from home. But what does that mean for your insurance?
Here are some important things to consider when insuring your Home Business.
Liability Insurance: All home insurance policies carry an exclusion for Business Activities unless you tell your insurer and they agree in writing.
Example: You run a hairdressing business from home. You’ve advised your insurer and they have it noted on your Home Insurance policy. If a client then visits your home for the purposes of getting a haircut and they trip on the stairs, your policy should respond.
However if you were to spill hair dye on their mink coat and they sued for damages, you would need to have a separate Liability Insurance policy for your Business Activities as a Hairdresser.
Tools of Trade: Home Insurance policies also have exclusions or sub-limits for Tools of Trade which can include anything from Computers to Make-up Kits.
Example: You run a photography business from home, someone breaks in and steals your equipment and laptop along with other general home contents. Where items are used for earning an income your insurer may refuse to pay outright or they may limit the amount to as little as $2,000.
If you have stock on hand or portable equipment which could be lost, stolen or damaged, you should always seek professional advice about the best way to insure them.
A good accountant will give you a free 30min session to answer your finance questions, a good General Insurance Broker will give you a free 30min session to answer your insurance questions.
They can help you decide what insurances you need based on all of your circumstances, including how much you can afford, because a broker represents your interests – not the insurers.
To make sure you have the RIGHT insurance for YOUR business download our FREE Business Insurance Checklist HERE.