PERSONAL FINANCE
K S I R R U O Y G N I T EVALUA
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n important part of the success of any business is ensuring you’re protected from obvious risks. Insurers require that you declare any information that might affect your risk, which is why it’s important to tell your insurance company that you’re running a home-based business. But how certain are you that you are adequately covered?
Evaluating your risk There are a few key areas of risk you need to watch out for. Ask yourself: • Does your business have customers or clients who come to your house, such as for appointments, alterations or pick-ups? • Does your business require special equipment? This could include a laser-cutting machine, laptop or commercial kitchen equipment for a catering business. • Are you using your car for business purposes such as deliveries or meetings with clients? 16
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• Does your business make or manufacture anything? • Do you offer a professional service? This includes accountants, engineers, auditors, architects, doctors and lawyers – anyone who is a formally certified member of a professional body. • Do you store a lot of data – including personal details from customers and back-up data? • Do you have employees working for you at your home?
How to cover yourself against risks and claims If you answered “yes” to any of the questions above, it might be time to consider specific insurance for your small business. Here are the types of risk and claims you will be covered against: Personal liability: Should a client or customer visit your home for business purposes and get injured – e.g. trip over equipment and fall – personal liability protection can cover you against a lawsuit.
