More people in the UK are running businesses from home than ever before. Whether you sell products online, offer professional services, or run a small workshop, you still face risks. Home-based business insurance is designed to protect you, your equipment, and your customers.
This guide explains the five most important types of cover for UK home businesses.
1. Public Liability Insurance for Home-Based Businesses
If a client or delivery driver visits your home and gets injured, you could be held responsible. Public liability insurance covers legal fees and compensation if someone is hurt or their property is damaged because of your business.
Example: A customer trips over a cable in your home office and breaks their wrist. Without insurance, you could pay thousands of pounds in compensation.
2. Professional Indemnity Insurance for Home Workers
If your business gives advice, designs, or services, professional indemnity insurance is essential. It protects you if a client claims your work caused them a financial loss.
Example: You run a consultancy from your living room. A client claims your advice caused them to lose money and wants to sue. Professional indemnity insurance can cover the legal costs and any payout.
3. Product Liability Insurance for Home-Based Sellers
If you make or sell products from home, product liability insurance protects you if an item you sell injures someone or damages their property.
Example: You make candles at home and one causes a fire in a customer’s home. This cover can handle the claim and costs.
4. Business Equipment and Stock Insurance
Your home contents policy might not cover business items. Business equipment insurance protects your tools, laptops, or machinery. If you store stock at home, stock insurance can cover it against theft, fire, or flooding.
5. Employer’s Liability Insurance for Home Businesses
If you have staff working for you, even part time, UK law requires employer’s liability insurance. It protects you if an employee is injured or becomes ill due to their work.
Why Home-Based Business Insurance Is Important
Many home business owners assume their standard home insurance is enough. In most cases, it is not. Specialist cover ensures you can keep trading even if something goes wrong.
Get Your Home-Based Business Insurance UK
A tailored home-based business insurance policy can include all the covers you need. Speak to a broker to make sure you are fully protected without paying for extras you do not need.