Working From Home? What to Know About Home Business Insurance

 The COVID-19 Pandemic changed the way we work. For many Australian small business owners, working from home has gone from a temporary solution to a convenient and flexible way to run a business but does your home insurance automatically cover your business? Home and contents insurance may not provide cover for business equipment, stock, business activities or liability exposures.

1. Check your home insurance policy! 

If you run a business from home, it’s worth checking out your existing home insurance provider to understand what your policy covers. Depending on the insurer and your circumstances, they may be able to extend your home and contents policy to cover certain home-based business activities or business property.

2. Consider Home Business Insurance  

If your existing policy does not provide the cover you need, you may need to consider separate insurance for your home-based business activities and property. We can help you explore your options and find cover that suits your business needs

Depending on your circumstances, insurer criteria and the policy available, there could be several types of cover you may want to consider. The type of home business insurance you may need will depend on the size of your business, whether customers visit your premises, and the equipment you use to operate.

Insurance options for home-based businesses:

Business Liability

Business Liability may help protect your business against certain claims arising from your business activities, subject to the policy terms, conditions, limits and exclusions.

This can be particularly relevant if clients, customers or other third parties interact with your business, including at your home.

Business Contents

If you keep business equipment, stock or other contents at home, you may want to consider whether these assets require business insurance rather than relying on your home insurance.

The cover available will depend on your circumstances, insurer criteria and the policy you choose.

Portable Business Contents and/or Tools of Trade

If you take business equipment, tools or other assets with you when working away from home, Portable Business Contents and/or Tools of Trade cover may help protect eligible items, subject to the policy terms, conditions, limits and exclusions.

This could be relevant for tradespeople, consultants, creatives and other business owners who regularly work between different locations.

Additional coverage options:

Depending on your business profile, insurer criteria and the policy available, you may also be able to add cover for risks such as:

Business Interruption: May help cover loss of income and certain ongoing business expenses following an insured event that prevents you from operating your business.

Equipment Breakdown: Cover for certain unexpected breakdowns of eligible business equipment.

Theft: Cover for certain loss or damage resulting from theft.

Money: Cover for certain loss of business money.

Glass: Cover for certain accidental breakage of eligible glass at your business premises.

Working From Home as a Sole Trader? 

Many home-based businesses are run by sole traders. Whether you're a consultant, freelancer, online retailer, creative professional or tradie managing the business side of things from home, working from home doesn't remove the risks that come with running a business.

You may still rely on business equipment, store stock at home, interact with clients, or use technology to manage day-to-day operations. If something unexpected happens, it could impact your ability to continue working and earning an income

Taking the time to understand your exposures can help ensure you have the right protection in place as your business grows.

Is your home-based business properly protected?

Get a quote