Insurance for home-based businesses

If you've recently started a business, chances are you're working from home. What with registering the business, sorting out your cashflow and buying in new stock, starting up is a chaotic process for any new business owner - but make sure you don't forget about your insurance. Here's our guide to making sure you're covered.

• Why do I need separate business insurance?
• What needs to be insured?

Why do I need separate business insurance?

Many home-based entrepreneurs rely on their home contents cover to protect their business needs, and, although this may provide adequate cover for equipment, it won't cover other aspects of your business such as staff or loss of earnings, which you will need more specific cover for.

• Businesses need specific insurance
• Contents cover may not cover your business

What needs to be insured?

Home-based firms are likely to have a tight cashflow and are therefore more at risk of losing out if disaster strikes, so you may need business interruption insurance, as well as having good business contents cover. On top of that, if you are an employer, it's a legal requirement to have employers' liability insurance.

• Business interruption insurance may protect against loss of income and additional operating costs due to damage to property caused by fire, water damage etc
• Business contents cover may protect your equipment
• You are legally required to have employers' liability insurance if you are an employer

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