Business insurance: the basics

If you run your business from home, you shouldn't assume that your existing household insurance covers you. You need to assess your business insurance needs separately. For example, your existing policy may not extend to cover:

• the full value of business equipment
• public liability if customers or members of the public visit your place of work

Talk to your current insurers and explain your plans. They may require an additional premium on your current insurance, changes to your home - such as the installation of a safe or partitions - or cover for new areas of risk and liability.

If you don't notify your insurers in advance, you may find that your business isn't adequately insured - and you may even risk invalidating your household insurance policy.

You must also remember to notify the provider of your motor insurance if you intend to use your private vehicle for business purposes.

There are special insurance packages for homeworkers - ask your broker for more information.

If you choose to deal directly with an insurer, it's worthwhile checking that they are a member of the Association of British Insurers (ABI).

For more information on the implications of working from home, see use your home as a workplace.