Starting a home-based business is becoming ever more popular with around seventy percent of all new businesses in the UK being started at home.
However, before you take the plunge and start your new business venture you need to look into your legal obligations with regard to insurance.
If you plan to employ additional staff then you will need to take out employer’s liability insurance. This is a legal requirement unless the staff member you take on is a close relative. Employer’s liability insurance basically covers the health and safety of your employees, and pays out should an accident occur in the workplace and your employee is injured as a result.
Another type of insurance that you may wish to consider is public liability insurance. This type of business insurance is not compulsory but may be of benefit depending on what type of business you operate. In short, it covers you in the event that a member of the public sustains an injury whilst visiting your business premises.
If you provide help and advice to clients then you may wish to take out professional indemnity insurance. This sort of policy will pay out if a client makes a claim against you if they believe that the advice you have given to them has been detrimental. An example of someone who may benefit from this type of policy is a financial advisor, architect, or personal trainer.
It is highly advisable that you insure your business premises, in this case, your home. Buildings insurance will protect your home, and your home office, should you be unfortunate to experience fire or flooding.
If you intend to start a home-based business you may wish to consult with an experienced insurance broker in order to determine which types of policy would be beneficial to you, and which ones may be required by law.