Flexible hours, no sitting in traffic and reduced operating costs, the benefits of working from home are easy to see. While running a business from home can be rewarding, both financially and in terms of lifestyle, there are certain risks that you are exposed to that won’t necessarily be covered under a home and contents policy.
As a business owner operating from home full-time or part-time, your business is your livelihood and it should be protected. In order to protect your home-run business, it’s important to be fully aware of the business-specific insurance that may be appropriate for you, such as:
- Business Interruption Insurance: Business Interruption Insurance can cover ongoing business costs when your operations are interrupted as a result of an insured loss. For example, if a burglar targets your home office and steals your laptop amongst other valuables, you may not be able to work until you replace the laptop and the data on it. Business Interruption Insurance may cover the associated costs.
- General Property Insurance: You can cover valuable portable items such as your mobile phone and laptop with general property insurance. This type of insurance is designed to protect pieces of equipment that you usually carry around with you in the course of your business. If you work from home but travel frequently, your laptop may be damaged on the road, and general property insurance can cover the costs of repair or replacement.
- Income Protection Insurance: If you are unable to work due to sickness or injury, Income Protection Insurance can help provide financial support by covering part of your monthly remuneration or share of business income until you are back on your feet.
- Machinery Breakdown Insurance: Machinery Breakdown Insurance covers the breakdown of equipment, such as computers, telephones, televisions and point of sale. For example, if you run a catering business from home and your refrigeration unit breaks down, a Machinery Breakdown policy may cover you for the costs associated with the deterioration of stock that was kept in the fridge.
- Money Insurance: If you are paid in cash, you will likely store a lot of money on your premises. You can insure this money itself against loss through burglary, armed hold-up or fire. Some policies may also cover the money while it is in transit, so to check your policy for these details.
- Public Liability Insurance: Public Liability Insurance offers protection against the small but serious risk that someone could injure themselves on your premises. If you have customers or suppliers visiting, no matter how infrequently, there is a chance that one of them could trip over a loose wire or uneven paving and seriously injure themselves. Public Liability insurance can cover legal fees and any resulting compensation payout. It can also protect you if you’re found responsible for damage to their property.
- Tax Audit Insurance: An audit by the Australian Taxation Office is often unexpected and expensive, and in most cases, unwelcome. The possibility of being subject to a random audit is increasing every year, and no business is immune. Tax Audit Insurance can help cover your accountant’s fees if you find yourself the subject of an audit.
If you operate a business from home, and need further advice on the most appropriate insurance cover for you, PSC Insurance Brokers can help. Get in touch with one of our brokers for more information.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
