Home Based Business? Know your risks.

With over 1 million people operating a business from their homes, Home Based Businesses (HBBs) are an important sector of the Australian business community.

most home policies require you to inform them you operate business from home and have penalties for non-disclosure..

Just as there is for the thousands of businesses that operate from commercial premises, there are a wide range of Government rules and regulations that apply to HBBs – things like taxation, employment, government, council approval and licensing. Unfortunately, many HBB proprietors aren’t aware of, or simply just ignore, some of these rules.

And so is it with insurance for HBB. Turning a blind eye to what could be your financial lifeline is the gamble that too many HBB operators take.

One of the most common mistakes made by HBB is to assume that home insurance covers the business risk. Home polices vary as to the coverage varying from no cover to strictly limited cover. Be aware, most home policies require you to inform them you operate business from home and have penalties for non-disclosure.

If you are a HBB owner perhaps you should consider these essential Business Insurances as a priority:

• Public liability cover for persons visiting your business at home and for any liability whilst you are working away from the home,
• Workers Compensation for any employees working at or from home,
• A combined business insurance package covering the loss of stock, equipment and other contents caused by fire and other perils,
• Professional indemnity insurance,
• Contractors Liability,
• Disability Insurance,
• Business Interruption.

Got a home based business? A good Insurance Broker can provide you with extremely useful advice and services to protect you, your business, and your home. If you would like any assistance in this area, please email us on tbib@tbib.com.au or call us on 07 3252 5254 and talk to one of our brokers.