Home-based Business and Insurance cover

Home-based Business and Insurance cover

Lots of people operating an office or business from home and it’s essential that your major asset has the right insurance. 

While some insurers will provide cover for a home office and office contents (for a small extra cost), most insurers don’t cover home businesses if they involve importing, repairing or retailing from the home.  

Check List 

1. Selling goods and equipment sourced in Australia

You’ll need separate business insurance to cover: 

  • Stock and business contents for fire and accidental damage,  
  • Public liability if people are injured collecting or delivering goods at your home; as well as
  • Product liability to cover your legal defence costs and court-awarded damages if a customer is injured using the item.

2. Repairing, repacking or importing goods or equipment 

The importer or wholesaler is responsible under the Australian Consumer law for loss or damage caused by the product. Therefore, you’ll need separate business insurance to cover:

  • Product liability to cover your legal defence costs and court-awarded damages if a customer is injured using the item; and
  • Public liability if people are injured delivering or collecting goods from your home.
  • As well as Stock and business contents for fire and accidental damage. 

3. Professional advice or services

If your providing professional services such as accounting or IT consulting from your home, you’ll need professional indemnity insurance to cover your legal defence costs and any court awarded damages from alleged or actual act, errors or omissions which your customer complains has caused them a financial loss. 

It’s important to note that professional indemnity covers financial loss, where as Public and Product Liability covers personal injury or damage to property from goods you sell.

4. Cyber hacking and breach of personal information

If you store personal or sensitive customer or business information or conduct online transactions, cyber liability insurance is a must. Home insurers don’t provide this cover, so specialised insurance is needed to cover lost data, ransoms and loss of business.

Operating a Business from Home? Check your Home Insurance 

Many home insurers don’t automatically cover personal injury or property damage arising from a home business, so if you operate any sort of business, whether bookkeeping or chiropractor, you should talk to your insurance adviser and discuss your business and risks. 

By understanding your home-based business risks and insurance needs, you can manage the financial exposure and focus on growing a profitable business.

General Advice Warning

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.

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From your family and employees to customers and suppliers, there are a lot of people who depend on your business opening its doors each day.

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For most people, the family home is the largest asset they’ll ever own. This means it is essential to protect it, inside and out, with the right insurance cover. After all, no one wants to discover they’re inadequately insured when it’s too late.

Find your local Insurance Adviser

Talk to your local Adviser to get advice about your insurance needs and to get a quote