New Zealanders are increasingly working from home for a variety of reasons.
Some people run their own businesses, others have negotiated to work from home with an employer part-time, while another group works for an employer full time from their home.
Whichever model someone falls under, there are lots of different insurance implications when people choose to work from home. Home insurance is offered by a provider on the assumption that the property is solely residential. If you work from home, it may not be enough to cover your business.
Here’s what to think about to ensure you’re protected.
Business is business
Insurance coverage should be unique to your business. Some insurers will agree to insure a home when it’s partly used for running a business, but it depends on the level of risk.
There is a big difference in running a home office from your laptop in the spare room to manufacturing on site or selling products from home direct to consumers. Your signage could mean your property is a higher risk to break-in or burglary.
A great starting point is by talking to your insurance broker to ensure your business and property are fully covered.
House and contents insurance is not enough
In general, it’s essential to ensure you have a home and contents policy if you’re working at home that will provide cover for assets such as the computer on which you conduct the business.
However, some home businesses may require a more expensive set up and a simple contents insurance policy might not be enough. A contents policy probably also won’t cover any stock you have at home, or your liability if something goes wrong.
Again, it pays to speak to your insurance broker to investigate getting the right cover for your business needs.
Additional insurance considerations
There is a wide range of insurance available for your business depending on your situation. Some options include:
Asset Insurance, outside of your contents policy, you could include additional cover for specific items that are exclusively used for business purposes.
Business Interruption Insurance will ensure your business is secure, and able to cover the loss of profits, for the period the business is affected by damage to your insured property if you are burgled, subject to a fire, storm damage, or a natural disaster.
If you use your private car for business purposes, you’ll need a Commercial Motor Insurance policy. If you have a private vehicle policy and damage your car while out running business errands, your claim would likely be declined, and you could face a hefty repair bill.
All businesses and self-employed people should have the most basic liability insurance – general liability cover. General liability insurance can protect you if you cause harm to a third party or their property. For instance, a courier delivers a document to your home and trips and has an accident while making the delivery.
How can we help?
At Wayne Grayson & Associates, we believe an informed insurance decision is the right one. Whether you’re after business or personal insurance, our expert brokers will ensure your insurance is the right fit for you.
Contact one of our Auckland-based insurance brokers for advice on the best solution to you and your work from home insurance needs.