Working from home can give you a quiet, comfortable and focused environment, with no commuting and the ability to manage your own time.  There are certainly lots of positives and these may be some of the reasons why there are currently over 4 million people (13.7% of the workforce) now working from home and this is expected to rise to 50% by 2020.

Here are some questions you may wish to ask yourself before taking the step into home working.

What does this mean for my home insurance policy?

It certainly doesn’t mean that you will have to take out different home cover, however, you will need to make your insurance company aware of your work situation as you may need some additional cover.

If you are just doing clerical work for an employer and you don’t receive work related visitors, then there probably won’t be any change to your insurance.  You may even find the premium goes down because you are in the house during working hours.

What if I run my own business?

If your registered business address is the same as your home address your insurance company will need to know the nature of your business as well as whether you store goods at home and hold any specialist tools.

Your contents insurance may not provide cover for any items that are used for business or professional purposes and some do not provide cover for accident damage to mobile phones, laptops or portable computer equipment if they are taken out of the home.  It is always worth a quick call to your insurance provider to check what is covered.

What if I earn money using Airbnb?

Most insurers will not cover you if you decide to rent out your spare room, or indeed, your full house.  However, your current insurer may be willing to extend your existing policy for a fee and a larger premium.

Bear in mind that even if you do manage to get an extension on your cover, many policies will not cover theft or accidental damage.

Don’t even think about renting out your property without insurance though as this can leave you without any cover should your insurance provider find out.

What if people visit my business at home?

If you have people visiting you at home on business or you visit other people on business, it may be worth looking at Public Liability Insurance.

This insurance covers you for any claims arising from someone injuring themselves at your home as well as any damage you may cause at their property.

What if I hire employees?

If you hire someone to work for you, this includes full and part time staff, freelancers or volunteers, you need to have at least £5 million Employer’s Liability Cover by law.  This should safe guard you should an employee get injured while working for you.

You do not need Employer’s Liability Insurance if your business is not a limited company, and you only employ yourself or close family members, however, it may still be worth considering taking some cover out.

Do I need to insure my work?

If you provide advice or a service people pay for then you will need to take out Professional Indemnity Insurance.

This will cover you if someone sues you or claims compensation if they feel you’ve made a mistake or cost them money.

Without this cover in place defending a claim, and paying compensation should you lose, can become very expensive.

 

If you would like any help with your insurances please contact amy@northcottbeaton.co.uk or call us on 01392 426046