Enterprise Nation

When you run a business from home, what sort of insurance do you need to get? That's a question we're often asked. To help answer it, and other questions on insurance, we spoke to Direct Line for Business.

Should I tell my insurance provider that I'm starting a business from home?

Yes, you'll need to tell your home insurer as it may affect your existing home insurance policy. You'll also require some home business insurance.

I'm starting a dressmaking business from home, what kind of insurance do I need?

The only compulsory insurance required is employers' liability cover and you only need this if you employ someone.

However, individuals running any type of home business should consider:

• Public liability which protects you in the event you do something that injures a third party or their property
• Products liability to cover you if the product you are producing injures someone or causes damage
• Contents cover for items used in the manufacturing process e.g. a sewing machine
• Stock cover for the items you sell and the materials used to produce the goods
• Business interruption so if you can't trade (as a result of an insured event such as a fire or flood), you will be covered for the income you have lost

Is there any insurance I need to consider if clients or partners visit my home?

Public liability will cover you for any injuries to third parties visiting your premises. There is an overlap with home insurance here, but if third parties are visiting your premises for the purpose of your business, your business policy should cover this.

How much will a home business insurance package cost?

The cost of your home business insurance really does depend on your occupation and the level of cover you require. Some elements of the policy will be standard, but you have the option to add extra cover depending on your requirements which in turn increases your premium.

• Direct Line for Business, Home Business Insurance

Emma Jones
Emma is founder of Enterprise Nation, a business expert and author of Spare Room Start Up and Working 5 to 9.

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