Over the past 20 years, outsourcing has increased in nearly every business. Activities that were once undertaken by full time employees are now outsourced to either individuals or small businesses.
A lot of companies have made people redundant and then outsourced the business actions to them. This has resulted in an increase in the number of people running their own business, usually from their home address.
Where this happens, the business will own assets and have particular liabilities that will not be covered under a home insurance policy.
To arrange for cover, the business will need to arrange a separate home office insurance policy. These policies are very similar to small business insurance packages, but will have additional covers, such as professional indemnity.
Office and computer equipment. Whilst prices have dropped in recent years, the combined cost of the physical machines and the software they contain means that even three or four electronic machines, including a computer, can cost over £5,000 to replace. Portable office equipment cover is also required if you take a laptop out of the home address on a regular basis.
Public liability. Not a legal requirement, but if you visit third party premises you will need this in case you cause any physical injury or damage any third parties property.
Employers’ liability is a legal requirement if you employee anyone.
Professional indemnity. If you are providing a service or advice for a fee (whether a separate fee or not) then you could have a claim against you for professional negligence, this is where PI insurance is required.