Public liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public brings a claim against you due to their being injured or sustaining property damage as a result of your negligent business activities. It can also cover the following:
If customers are visiting your home, or it’s open to members of the public, then public liability is something you should carefully consider for inclusion in your business insurance policy. Furthermore, in some industries, it’s a mandatory requirement.
Do you make something from home? From tasty treats to furniture and home décor, there’s the potential that things might turn sour. Unfortunate events such as food poisoning, malfunctions or faults that cause harm to your customers can mean that you’re liable and could face a lawsuit.
Product liability insurance provides protection in relation to claims by third parties due to personal injury or property damage caused by products sold or supplied by your business. Reasonable costs incurred in defending a covered claim will also be met. It is typically part of a public liability policy.
Do you have some tools and equipment that are essential for your home business? These are unlikely to be covered by a home and contents insurance policy. What would you do if they were to breakdown and required repairs or replacement?
Situations like this are what machinery, tools and equipment cover is designed for. So long as the damage isn’t caused by normal wear and tear, you’ll generally be able to make a claim.
Modern technology makes it easier to work from home and run your own business than ever before but it does provide some unique risks. Cyber liability insurance can provide a financial safety net should you be hacked, lose data and IT systems or be faced with legal costs for a breach in customer privacy.
Even when you do everything right and keep your account books clean, the Australian Taxation Office (ATO) may decide to audit your business. This means you’ll probably want a professional accountant to help you respond to the ATO.
Fortunately, tax audit insurance can help cover an accountants’ fees incurred in connection with an audit by the ATO.
You can read up on more types of business insurance, plus the ones we’ve covered here, in our handy explainer.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
As a modern entrepreneur working from a home business, you might be wondering, ‘Do I need business insurance if I already have home and contents insurance?’
The answer is probably yes.
Regular home and contents insurance can cover items like your computer, furniture and building. It won’t cover injuries to people on your property in an event related to your business for example, if something goes wrong when providing services for a client. It also won’t cover losses like having to deal with tax audits or legal expenses due to a privacy breach if you get hacked.
Some insurance providers do offer combined home and contents with business insurance as some elements, such as property damage and theft, can impact your household as much as your home business.
Be sure to read the policy wording or Product Disclosure Statement (PDS) for details on exactly what is and isn’t covered.
To figure out what business insurance you might need, it’s important to evaluate what risks your home business could face and assess how much cover you could need.
For example, a home salon may wish to secure a public liability policy. Digital creatives like freelance graphic designers may find a cyber liability policy more crucial, especially if they don’t have any meetings with clients on-site.
Need help working out your business insurance options? You can contact our friendly team of experts by phone for assistance.
The cost of insurance for your home business will vary based on a variety of factors; including
Home-based businesses are typically small businesses and typically have lower insurance costs than workspaces for larger companies and businesses.
When comparing business insurance with us, you’ll be able to review your options side-by-side from a range of providers.
There are some things that business insurance, whether it’s for a home business, office tower or storefront, won’t cover. These are known as general exclusions and include the following:
While business insurance doesn’t cover motor vehicles, should your car be a crucial part of your business operation, you can get insurance cover for it with a car insurance policy. In fact, every vehicle in Australia needs to at least have Compulsory Third Party (CTP) insurance. CTP is part of your registration fees in most states and is known as Green Slip insurance in New South Wales.
You can compare car insurance for business use for free with us.
It’s mandatory to have workers’ compensation cover if you have employees.
Say you run a small workshop making pallet furniture out of your garage and have hired someone to help you out. If they’re on your payroll, you need to provide workers’ compensation should they be injured on the job.
Workers’ compensation rules differ by state so check in with your state or territory government to find out more.
If you need to make an insurance claim for your home business, you’ll typically be able to lodge a claim through your insurance provider’s website. The PDS will also have details on how you can lodge a claim.
You’ll generally need to provide evidence to support your claim such as photos of damage, receipts and paperwork. You can always contact your insurance provider if you need assistance in submitting your claim.