With more people in the UK starting to work from home than in the past, there is some confusion over whether professional indemnity insurance cover is needed or not.
As a professional working from home or a small business operating out of a home office, you will still need some level of professional insurance cover. What type of insurance and the amount of cover you will need depends on how your small business works.
Professional indemnity insurance is always recommended, in case a dissatisfied client pursues a legal complaint or you make a costly mistake during everyday business dealings. This sort of insurance is especially useful for small businesses which may not have the funds to fight legal disputes.
If your home business has any dealings with clients – they visit your home or you meet them at their base – or the general public then you will also need public liability insurance. This provides financial protection for everything from liquid spilled on a client’s laptop to an injury caused by a visitor tripping over a wire in your home office.
Finally, if you employ even one person to work for you, you are legally required to take out employers’ liability insurance. Regardless of whether you pay the employee or they work for you voluntarily, you are still responsible for their health and safety whilst at work. If they become hurt, you may be sued for compensation.