With more than 1 million people operating a business from home, Home Based Business/es (HBBs) represent a large sector in the Australian business framework and too often, they are under-insured placing the owner and workers at risk.
Just like thousands of counterparts that operate from commercial premises, there is a wide range of Government rules and regulations that apply to home based business and small business. Areas such as taxation, employment, local council approval and legal obligations – just to name a few. Unfortunately, many home business proprietors aren’t aware of, or simply just ignore some of the rules.
Insurance is one of the considerations often overlooked by small businesses and online business. A common misconception we hear at Insurance Aid is that your home insurance covers the risk of running a business at home. Home polices can differ greatly as to the coverage offered – varying from no cover to strictly limited cover. Most home policies require you to inform them you operate a business from home and may refuse a claim if you do not.
If you are running a business at home or starting a small business, the following business insurance should be considered:
- Public liability. This covers people visiting your business at home, along with any liability whilst you are working away from the home.
- Workers Compensation. This policy looks to cover any employees working at, or from home. If you are self-employed and do not have employees, worker’s compensation doesn’t apply but you should consider personal accident and illness insurance instead. *
- A combined business insurance package/ or small business office insurance. This policy can cover many risks, including loss of stock, equipment and damage to contents caused by fire and other perils; theft of contents and stock; and business interruptions.
- Cyber Liability. This policy is important for businesses of all sizes as anyone can be vulnerable to a loss of, or lock down of data by computer hackers. Can you afford to pay a ransom for your data?
- Professional Indemnity. This policy is essential for those businesses who give professional advice for a fee. It looks to cover your clients for financial loss because of the advice you provided.
- Transit Insurance. This policy is critical for covering your stock if you deliver goods directly to your clients (via courier or yourself).
This is just a small list that will vary subject to type of business operation.
Do you have a home-based business or are you thinking of starting a small business? Call Emma Anthonisz at Insurance Aid General Brokers on (07) 3630 1823 to take the guesswork out of your insurance needs. By receiving a free, no-obligation insurance review, your time is freed up to focus on what’s most important to you – your business!