Working from home - Insurance ?

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Bridget1968

Free Member
Oct 17, 2007
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  • #1
    If I am working from Home doing accounting do i need insurance?

    Someone advised me to have Public liability insurance, but if no one is visiting my home and i am picking work up from their premises then why would i need this???

    Could someone advise me on what I should have because I dont want to spend money unnecessarily.

    Thanks, Bridget
     
    D

    DavidT

  • #3
    Maybe I am wrong on the terminology but I think it is more likely to be Professional Indemnity rather than Public Liability insurance you would be looking for.

    Also I don't think you legally require it, but some contracts may require you have it and it is for your (& client) protection.
     
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    A

    APRogers

  • #4
    DavidT said:
    I think it is more likely to be Professional Indemnity rather than Public Liability insurance you would be looking for. I don't think you legally require it, but some contracts may require you have it
    Click to expand...
    In a nut shell:
    • Employers Liability - legal requirement for the protection of your employees. If you're a LTD company, the directors are legally employees and the insurance is required. The legal minimal level of cover is £2,000,000 per incident although most insurers offer much higher than this. No discounts for accepting less though!
    • Public (& Products) Liability - protection for people not employed by you but to whom or whose property you cause damage or injury. Not mandatory but, as advised above, many contracts will ask for proof before allowing you to proceed. Market norm is £2,000,000 any one incident (or year of insurance).
    • Professional Indemnity - essentially intangible; protection against damage or injury caused as a result of wrongful advice rather than action. Professional trades such as architects, insurance brokers and the like are morally obliged to have it but it isn't mandatory. It is expensive and usually carries a heavy excess.
    Hope that helps. 10 years experience as an underwriter and broker didn't go entirely to waste!
     
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    A

    APRogers

  • #6
    forlow-designs said:
    Also, Dont forget Contents insurance! Work equipment can be expensive so it is wise to get it insured.
    Click to expand...
    Good point, well made. Do NOT rely on your home contents insurance because, in the event of a claim, you'll need to provide receipts or other prove of ownership. If it went through the business, you don't own it and the insurance company (quite rightly) won't cough for it.

    I've just taken out a specific Home Workers insurance policy with AXA through my broker, where you can pick and choose the sections of cover you need, including all of those mentioned in this thread so far, barring Professional Indemnity.
     
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    A

    APRogers

  • #9
    Bridget1968 said:
    If I am a sole trader and the only employee do i still need Employers Liability?
    Click to expand...
    As a sole trader, you're not an employee, the company isn't a separate legal entity. You're the only legal entity and you can't sue yourself, therefore insurance not required.

    A limited company is a separate legal entity and you are working for it, hence insurance required. That you own it is irrelevant in this case.
     
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    T

    thebompster

  • #10
    I'm thinking about starting my own business from home onmy own. The job is dog grooming, I am picking the dogs up in my car and dropping them off therefore it does not infringe on the parking our street.
    Also it is only going to be part time as I have another job.

    Do I need the councils permission (it is my own home) and the room also serves as a computer and storage room?

    Do I need insurance,

    Where do I register the business for Tax purposes?

    Thanks
    Lisa
     
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    Scalloway

    Scalloway

    Free Member
    Jun 6, 2010
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  • #11
    If you are just using your address for delivering and picking up the dogs you may not need permission but you would be advised to ask your local council planning department. Doing a small amount of admin work at home is ok.

    Insurance is a must. Just think what would happen if a pedgree dog escaped, caused an accident and got killed. Hopefully unlikely though!

    To register as self employed click here

    http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm
     
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