What cover do I need?
You are likely to need a number of different insurance covers, which will primarily depend on the type of work that you do. These core products should help you get started:
Professional indemnity insurance: You need this if you offer advice to your customers or clients on a professional basis. Professional indemnity cover can help to protect you in situations when you make a mistake in your work, or if the help and advice your client receives isn’t up to scratch. If the client then suffers a financial loss as a result, you may be faced with a claim for compensation.
Regardless of whether you feel the error is on your part, you could still incur legal costs which could cripple your business financially. Professional Indemnity insurance can cover this compensation and any ensuing legal costs, and help to keep your business running.
Public liability insurance: This covers you against the damages you would have to pay out should a member of the public suffer an injury or have their property damaged at the premises used for your business. A claim could arise from something as simple as a slip on a wet floor resulting in a fractured wrist.
Business buildings insurance: As a home worker, this will cover damage to your buildings, for example from a flood or fire. It’s important to note that this insurance covers your home for both business and personal use. Therefore you only need one form of cover as opposed to a separate personal home policy and business policy. Please note that your personal contents will not be covered by a business building policy.
How to choose a home business policy?
Here are some top tips to bear in mind when choosing a home business policy:
If you need professional liability insurance, its often worth asking your customers or clients what cover level they expect
Ensure you review your quotes in detail, paying particular attention to exclusions (or endorsements) that apply to the policy.
If you employ anyone, you must have employers' liability insurance by law. If not, you can be fined up to £2,500 per day that you are uninsured.