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Home business insurance: Essential cover for start-ups and SMEs

Home business insuranceAccording to a report conducted by Enterprise Nation, 2.1 million businesses in the UK are run from home. Some of the fastest growing home based business sectors include the business and professional areas, online trading, personal services, food and domestic energy production. (Source:, June 2010.)

Whether you are a freelance journalist, a mobile hairdresser or a complementary therapist, one thing you may not think about when setting up your home-based business is home business insurance. Do not make the mistake of thinking that your home insurance policy covers your home business venture.

Home insurance is designed to cover domestic risks and may not include your office equipment, furniture, tools, fax and copier machines, etc. If you are a web developer, photographer or graphic designer, you most likely rely on electronic equipment to run your business. If any of your equipment is damaged, lost or stolen, how quickly would you be able replace it?

The right home business insurance policy would cover the cost of replacing or repairing your equipment so that interruption to your normal business activity is minimal. Working from home does not protect you from unforeseen accidents and incidents. Home insurance does not cover public liability, professional indemnity or employer’s liability insurance.

These types of cover ensure that if a legal claim is made against your business by an employee or customer, any legal costs incurred and compensation awarded are covered. The value is generally dependant on the level of cover you choose.

Just one successful liability claim could effectively bankrupt your business. Adequate home business insurance can help your business survive such a claim financially. If you are in the mobile services industry, your ability to do business depends on your tools, equipment and vehicle. Could you afford to pay for repairs or replacement costs on any of these items from your day-to-day budget?

YOUR Insurance, the small business insurance specialists, offer a wide range of home business insurance options designed to give small and medium enterprises or SME owners peace of mind. With a free 24-hour legal and emergency helpline, computer and portable equipment cover, and the option of spreading your premium payments over 12 months, YOUR Insurance offers specialist insurance options for start-ups and SMEs across all industries. Contact us for more SME business insurance information or a free quote now.