Many successful new small businesses started out in the family garage or spare room. In the age of the internet, more and more home-based businesses are being created. They sell their goods and services on the internet and ship them to front doors around New Zealand each day. Just because you can run your business wearing shorts or track pants doesn't mean that it's not a real business. So, it needs to be insured just like any other bricks and mortar commercial enterprise.
What Cover Do I Need For My Equipment and Stock?
If you use any kind of equipment to run your home-based business then you ought to consider buying a business material damage insurance policy because your homeowners' policy doesn't typically provide coverage for business losses.
Business insurance for material damage cover is recommended for assets such as the computer you work on or the equipment you use to produce your products, or desks, a printer, internet modem and mobile phone, as they will be a major source of your income and how you work. Business material damage insurance will cover you for loss or damage from power surges which could damage vital electronic equipment or refrigerated goods. It will cover stock such as cosmetics and clothes that you distribute or material used in your trade, brochures or packing, mailing and shipping material. It will also cover property whilst in transit anywhere in New Zealand.
Home-based small business owners can extend cover for loss or damage as a result of earthquake, tsunami, volcanic eruption, hydrothermal or geothermal activity or fire following any of these. Cover can also be extended to include business interruption insurance.
Why Do I Need Business Interruption Insurance?
What if your home office is damaged and you are unable to operate or need to move premises? One of the biggest concerns any business owner has is their ability to continue in business after a large loss. If a property loss prevents you from providing products or services to your customers, they may go elsewhere and never return. Your expenses such as wages, rent and loans will still need to be paid. That’s where business interruption insurance comes into the frame for home-based small business owners.
Our business interruption product covers a shortfall in profit due to a drop in revenue, the cost of engaging an accountant or other professional to prepare your claim and the additional increase in costs to resume your business. These increased costs can include re-writing valuable papers and records. They also include relocation and temporary equipment to operate replacement premises. You can chose cover for up to 12 months of business interruption, up to 18 months and up to 24 months.
Is Public Liability, Employers Liability or Statutory Liability Insurance Recommended?
If you invite employees and clients into your home-based business, you must be able to cover the costs of any potential injury or damage. It is unlikely that your homeowner’s insurance will be able to cover the cost of these potential damages in home. So, specialised coverage is paramount. Public liability insurance allows you to cover these costs. You can then focus on growing your business.
As with any commercial business, accidents will happen. If you employ staff, even on a casual basis, you will need employer’s liability insurance.
A statutory liability insurance policy will protect your home-based business if fines are imposed and costs are incurred to defend your business and if you are found to have breached most Acts of Parliament in New Zealand.
To protect your small business, get a quote now for your home-based business and compare our prices and cover.