Buying Insurance

There are a number of different types of insurance suitable for home-based businesses; the major varieties are listed below. It's usually best to consult an independent business insurance broker or go direct to one or more insurance companies - some offer small-business packages that can be tailored to your requirements.

Professional Indemnity

Desirable if you advise or perform a service for clients and the quality of your work could substantially affect their business.

Home Contents Insurance

All your working equipment must be covered and you must inform the insurer if you add any new equipment, otherwise a claim could be invalid.

Business Category Car Insurance

Check whether your car insurance covers self-employed business use. You will certainly have to pay higher premiums if the business use of your car involves using the car as a taxi, transporting high-priced goods - for instance samples or stock - or you carry valuable or hazardous equipment.

Employer's Liability

Required by law if you employ even just one person, to cover you if an employee should be injured in the course of employment.

Product Liability

Important if you manufacture a product, no matter how modest, in case any member of the public is injured because your product is faulty.

Public Liability and Third Party Public Liability

The first policy covers you against any injury to the public through your work or in your home. The second type of cover may be relevant if you sub-contract any of your work to others who are deemed to be acting on your behalf.

Critical Illness Cover

Protection if you are ill and not able to earn money.

Accident Cover

This policy will pay you money if you are out of work owing to an accident. Premiums can be quite high if you are in a high-risk occupation, such as the building trade.

Keyman Cover

A popular policy for very small companies where the loss of one person through illness or injury can greatly damage the effectiveness of the company. The policy covers the cost of a temporary replacement employee.