What insurance will I need if I want to start a freelance business from home?
Posted on 5th August 2019 by Phil Ainley MCIM
If you are thinking about starting a business from your home, or if you already run a business from home, you need to consider your insurance cover very carefully. If you think you can rely solely on your home insurance policy for cover, think again as you could find yourself underinsured if you ever need to make a claim.
At Caunce O’Hara we offer a range of business insurance policies to ensure you are fully covered, so you can concentrate on building your home-based business into a success.
Our specialist home business insurance is designed to make sure you’re protected if issues crop up. It covers a wide range of industries, so whether you’re a consultant, a copywriter, or an eBay seller, you’ll be covered.
Policies can provide cover for your business equipment, including; your laptop, mobile phone and general business contents. This is in addition to providing insurance for any liability risks if you provide services, advice or designs to clients from your home.
This will give you peace of mind that your home-based freelance business is protected and in safe hands.
The following are policies you could consider to protect your home-based business;
Public Liability Cover
Up to £2million of cover for legal fees and damages. Public Liability (PL Insurance) covers you for the cost of a public liability claim from a third party, such as a member of the public (not an employee), that has suffered injury (or death) or property damage caused by you or your employees in the course of your businesses activities.
It can cover legal costs for defending claims and pay compensation awarded to a claimant if your business is found to be at fault. It will provide you with peace of mind that your business is covered.
Example 1) If you visit client’s premises as part of your work and accidentally spill a drink on their computer, they could seek compensation for the cost of repairs.
Example 2) If a visitor to your business premises (in this case your home office) trips on stairs due to a loose mat and suffers injury. PL insurance will then protect you for the cost of any damages claimed and legal costs for such a claim.
Professional Indemnity Insurance
Professional indemnity insurance is designed for anyone who provides advice or offers a professional service or designs to clients. These types of services are common for freelance professionals.
It is often referred to as PI insurance or professional liability insurance and covers legal costs and expenses incurred in your defence if you are alleged to have provided inadequate services, advice or designs that have caused your client to lose money.
PI cover is generally set up on a ‘claims made’ basis. This means it will only respond to a claim made against you while the cover is live. As soon as you cancel the cover you will not be covered for claims against you for historic work, even if that work was carried out while you held cover. This is particularly relevant to professionals who are closing their business due to a) retiring, or b) returning to employment.
This is where run off insurance comes in. For details about run off insurance please call our friendly team on 0333 321 1403.
Up to £2million of cover for your premises in case of fire or flood damage or burglary.
Up to £750,000 of cover for lost revenue if your business needs to close due to fire, flood or burglary damage at your home.
Building cover and/or business interruption could be the difference between you staying in business and having to close it in the event of an unfortunate occurrence.
Contents and Stock
Certain types of businesses retain a lot of stock on-site. This type of cover provides up to £50,000 of cover for the cost of replacing equipment, furnishings, or food and drink that is damaged or stolen.
Goods in Transit
£10,000 of cover for goods deliveries that are lost or damaged while in transit.
Loss of Money
If you lose money or it is stolen from your safe at home, you are covered for up to £10,000.
Legal Expenses Cover
Legal Expenses Insurance provides you with £100,000 of cover (in any one claim) for legal representation costs in the event of an investigation brought against you. The cover provided is delivered via two tier system. Tier 1 is the core cover that the policy provides. Tier 2 is the extra covers that are available to you.
A key benefit of the policy is that it will cover you for the expenses you incur if you are called-up for Jury Service. Our recent article about Jury Service as a Freelancer, Contractor or Self-Employed Professional explains in-depth what your obligations and entitlements are.
The cover starts at only £75.00. To find out more and to request a quote click here or call 0333 321 1403.
Working from home may provide you with more freedom, but it is likely that you will be required to provide repeat work for some of your clients.
This could eventually lead to discussing a retainer on a contractual basis. This is where a Contract Review can help.
It will help to provide clarity regarding your tax status based on the details of the contract and the actual working practices of the contract.
For only £60.00 you can gain peace of mind that your contract does not leave you exposed to an IR35 investigation among other potentially hidden obligations.
It is a good idea to have your contract reviewed before you sign it and begin any work.
For further details about insurance protection for your home-based freelance business, please call 0333 321 1403
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