In South Africa, small businesses make up 30% of the total employment, and a third of the total value added to the economy. If you’re 1 of these small business owners, and you run your business from home, it’s important to ensure that your business assets are insured correctly, and separately from your home contents.
It’s important to know the difference between running a business from home and having a home-based office where you work for a company that you don’t own, as your liability is different in these 2 scenarios.
If you have equipment at home that’s owned by a company, which you use to do business on their behalf, then it’s up to them to insure that equipment. There may be requirements in terms of you storing or transporting the equipment and you should check your employment contract or IT usage policy to safeguard yourself. However, running your own business from your home places the insurance onus squarely on your shoulders.
Running a business from home exposes you to more potential risks, and this risk needs to be disclosed to your insurer so that they can give you the correct premium and cover. Personal policies for buildings and home contents don’t take business-related risks into account, and this is why they may not cover your business equipment, any stock you’re keeping, or your liability to other parties, among other things.
If you don’t have cover for liability under a business insurance policy, and a client or colleague is injured while visiting your home business, you may be liable for costs in your personal capacity. Likewise, you need to have business insurance to cover loss of, or damage to, items that you use to run your home business. Even your car could be left effectively uncovered if your insurer doesn’t know that you use it for business purposes.
Whether you run your business form home or have a home-based office, make sure you’ve got the king of insurance on your side in case things go wrong. Pop a WhatsApp to 0860 50 50 50 for a commitment-free quote.
Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here.
