There are a lot of reasons why most people choose to work from home. First of all, it gives them flexible working hours and at the same time, they don’t have to commute each day, hence, reducing their daily expenses. You can have a balanced life since you can control your hours of work and how you work. However, it is also important that you must have adequate insurance so your livelihood won’t be at risk.
Whether you operate your business from home, or you are a freelancer or you just choose to work from home for your employer, it is essential that you have to examine your home insurance and check if it can cover you as well as your work.
Depending on your business or your profession, you might discover that you are not adequately covered by your existing policy, hence, you must get a policy that can cover you while you are working from home.
What type of working from home insurance do you need?
You may need to get professional indemnity insurance, public liability insurance, employers’ liability insurance, products liability insurance as well as a policy that can cover your stocks, equipment, or goods in transit.
Professional Indemnity Insurance
Essentially, professional indemnity insurance can cover your work. This is applicable if you provide advice, designs, or any types of service to your client in exchange for a certain amount of money. This policy can cover you in the event that your customer will sue you due to the erroneous service that you provide which cost them some money. If you don’t have professional indemnity insurance, then you might require a lot of money in paying for the legal fees as well as for the compensation costs. The professional indemnity insurance can help in preventing any financial loss because of the mistake that you’ve done on your work.
Public Liability Insurance
A public liability cover is suitable for you if you visit other people or if you have customers visiting your home. This policy can cover you in the event that someone gets injured in your home or their property was damaged and they make a claim. Claims can arise anytime. For instance, your client might trip over your carpet and get severely injured due to a bad fall. You will be held liable for paying the compensation costs. Similarly, if you spill something on someone’s furnishings while visiting their premises, then you could be facing a huge bill for the repair. Although this policy is not mandatory yet its well worthy especially if you or your business is facing claims.
What are other types of cover needed in your business?
Employer’s Liability Insurance
If you have employees in your work from home business, then you are required to get an employer’s liability insurance. This policy can cover the legal fees and compensation costs in the event that one of your employees will file a claim against you because they have gotten ill or injured while working in your business. Even if your business has gone into bankruptcy, your employee can still file a claim against you or your business. NHS can even claim for the cost of the ambulance and treatment.
This policy is required by law, however, there are some occasions wherein this cover is not necessary. For instance, if you don’t have other employees in your company or your employees are only your family members. However, it would be a smart decision if you consider taking this cover. If someone who works for you gets injured, then you need to ensure that they are properly taken cared of. Likewise, this can guarantee that the reputation of your business will not be harmed.
Products Liability Insurance
This cover is appropriate for those who are selling, supplying, or manufacturing products. In the event that someone gets ill or injured or their property was damaged due to your product, then you’ll have peace of mind knowing that you are covered. Without this policy, your business might experience financial loss due to the huge amount that you’ll have to pay for the legal fees and compensation costs.
Business Equipment Cover
If you are using your laptop, computer, mobile phone, or any type of equipment in your business, then you’ll need a separate cover for this since it will not be covered by your home contents insurance policy. The business equipment cover can also be added to your business insurance policy.
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About business banking
A business bank account is essential for any business – whether you are a contractor or a large firm with thousands of employees. There are many business account options with different account features based on your specific needs, including overdraft options, online banking, free business banking and interest on in-credit balances.