Written by Michael Foote, Insurance Expert
Working from home still carries risk
It’s easy to assume that if you work from home, you don’t need separate business insurance. After all, you’re not running a shop, managing staff, or meeting customers face to face. But the reality is that your home insurance may not cover business activities at all.
If you keep stock, store customer data, or see clients at your property, you could be exposed to risks that standard home cover won’t touch.
What home insurance usually excludes
Most home insurance policies are designed for personal use. They may exclude or restrict claims related to:
- Business equipment like laptops, printers, or tools.
- Stock stored at home.
- Liability if a customer or supplier visits and is injured.
- Accidents caused while running your business.
If you make a claim and your insurer finds out the damage was related to business use, they could reject the payout or even cancel your policy.
Common at-home business risks
Even quiet, office-based businesses can face issues. A power surge could destroy a laptop full of client files. A courier could trip over packaging at your door. Or you might handle customer data that would need cyber protection if lost or stolen.
If you sell physical goods from home, that risk increases. Stock losses, fire damage, and customer returns all become factors. Businesses like home-based gift shops or bakers, even if small, should consider specific cover.
If you trade through a physical shop instead, it’s even more important to have the right protection in place. You can learn more about options for shop-based businesses on our shop insurance page.
What cover should you consider
For home-based businesses, the right combination of policies might include:
- Business contents insurance for tools and equipment.
- Stock insurance if you sell physical products.
- Public liability if anyone visits your premises.
- Product liability if you sell or make goods.
- Cyber insurance if you handle sensitive data.
Even if you never leave the house, there’s still plenty to think about.
Don’t assume you’re covered by default
Business insurance isn’t just for high street retailers or tradespeople. If you operate in any serious capacity, whether part-time or full-time, it’s worth reviewing your risks and checking that your existing cover is enough.
Click here to compare policies that work for businesses of all sizes and find tailored protection for how and where you work.
