Working from Home

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If you run your business from home you may still need certain types of insurance. Your home insurance will not cover loss or damage of office equipment or offer any liability cover. The insurance you need greatly depends on the nature of your business, below are some possible covers you may require.

Employers' Liability Insurance (ELI)

Employers' Liability Insurance is compulsory for all businesses that have one or more employees. If you are the only person running the business but you own less that 50% of the company you are still classed as an employee. Although it may be very unlikely that you will ever claim against your own company it is still a legal requirement.

The only way you could be exempt from taking out ELI is if you are the only employee and you own 50% or more of the company shares.

The problem with ELI is that it is usually very hard to acquire cover unless you purchase it as part of a package. This is often either with Public Liability Insurance, an Office Package or a Homeworker Policy. Insurers don't tend to offer ELI on its own which can be very annoying for small companies who work from home, do not see members of the public but need ELI because the only employee owns less that 50% of the shares. Although Employers' Liability Insurance is the only cover required by law, you will probably have to opt for a package. Read more about Employers' Liability Insurance.

Public Liability Insurance

If customers come to your home or you go to theirs then you may wish to take out some Public Liability Insurance. Although it is not a compulsory cover it is recommended if you work in an industry that could accidentally cause damage to a customer or to their property. If you are a small company and cannot risk being sued by a customer or third party then you should discuss your options with an insurance advisor. Read more about Public Liability Insurance.

Contents Cover

If you have certain equipment that is expensive and could affect the functioning of your business if lost or damaged then you should consider some contents insurance. Read more about Contents Insurance.

Homeworker Policies

Many Insurance companies offer a 'homeworker policy' which can be ideal for some businesses. For more information about what a Homeworker Policy includes see our section on Insurance Packages.

Advising your Home Insurance Company

If you work from home you run the risk of invalidating your home insurance policy as not all policies cover home businesses. It is best to inform your home insurers that you are working from home and if you are not covered you can ask to change your policy. Always speak to the insurance broker; after all they are there to offer you advice.

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