Working from Home Insurance

The joys of working from home are obvious, but in order to run a successful home business there are considerations that must be addressed, particularly what type of insurance cover is necessary to make sure that a home business will thrive and succeed no matter what obstacles may arise. Accident cover, home contents and other potential liabilities should be taken into consideration, not only to protect a home business, but to also protect those coming and going for business needs or other purposes.

Anyone running a business from home must take into consideration insurance policies that go above and beyond a normal home owner's insurance policy. This includes things like protecting business documents, equipment, third party or client's meetings in a home office space and more. One must also think about issues like theft, accidental loss and fires, injuries and/or damages, which could put a home run business on hold or out of business for an undetermined amount of time, if not for ever.

A good home business policy will not only protect a self-employed home run business owner as far as his or her business goes, but will also offer total protection for the premises upon which it is located. It can be confusing, but a reliable insurer will combine the needs of a basic homeowner's policy along with the the protection a home run business needs for incidences that could include liability cover in case a client, third party or employee sustains injuries or other damages because of the home run business.

The fact is, anybody running a business from home must take into consideration provisions for work related mishaps, whether they pertain to incidences that occur within the home or related to off-site business project liabilities. For example, a client comes to one's home and trips on a rug, breaking a leg. In most cases, there will be an immediately claim filed for injuries that a home business owner could be liable for. On the other hand, a home business owner may meet a client at an offf-site location to give insight to a particular need of that client's. Because of the site, and the poor conditions of that site, the client is injured. The home run business owner, because of the risk factors involved in taking a client to that location, could be held liable for any injuries or damages sustained. Likewise, perhaps a client takes a home business owner to a site and recommendations by the home run business owner are made to enhance the site are given, only to find that advice is in error. The client or any other third parties involved suffer financial losses, death or bodily injuries because of that advice; rest assured, the home business owner will likely be held liable.

Ideally, an owner of a home run business should contact an insurer to protect not only the business contents of the home but also any personal or business liability potential exposures. The right insurance packages goes a long way to ensure peace of mind.

Buying a suitable policy will help to ensure that an all inclusive insurance package is purchased, not only to include home contents (business and personal), but to also offer cover to include any client or third parties entering the home or other work related premises should an injury or damages occur during the course of business related matters.

Inclusive cover should include all home contents, cover for items like lap top computers, van and/or vehicle transportation and client or third party claims for damages and bodily injuries.

Also, with few exceptions, should a home business owner have one or more employees, other than certain close family members, employers' liability cover is mandatory. This simply means that protection must be in place to cover potential claims by employees if they should be injured or fall ill as a result of their employment. Should an employer have employees who are not covered under the employers' liability requirements, stiff daily penalties are enforced, usually on a daily basis, until the requirements are met.

To sum up: a home owned business should have public and employee liability insurance. In most cases, a home run business owner will opt for approximately 2 million in public liability cover if no employees are involved; whereas, if there are employees they must have a minimum of 5 million cover. According to recent surveys, there are approximately 2.1 million home based businesses with a weekly increase of over 1,400 each week. Setting up an appropriate insurance package for a home based business is the first step in adding security to it's success.

Again, it is fairly obvious that whilst working from a home has advantages, overlooking one factor, like insurances, can be the demise of that business. Because a business is run from a home office does not mean that a typical home insurance policy will cover the business run within that home. In many cases, a home owner running a business from home has lost not only his business but his home as well, because he failed to inform his insurer of the business and this could invalidate a normal home insurance policy.

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