Many South Africans are trading in the traditional 9-5 to follow their dreams and start their own business. But, what a lot of people don’t realise is that even if they run their business from home, there are insurance repercussions to think about.

Running a small business from home comes with its own set of responsibilities, legalities and thus, insurance policies. In this article, we look at some of the critical factors that result in requiring insurance and a few types of insurance that small home-based businesses might need. 

First thing first, it is crucial to let your insurer know that you are running a business from your home. Even though your home possessions might be covered in case of emergency, you are not fully covered for losses explicitly incurred by your business if your business assets are not insured separately.

When you need to determine whether your home business is ready for insurance, here are a few questions to ask:

  • Do customers visit your home-based operations?
  • Does your business need special equipment? Laser Cutters, 3D Printers, Laptops etc.
  • Are you using your vehicle for business? Meetings, deliveries, etc.
  • Does your business offer professional advice? Doctors, Lawyers, Auditors – A member of a certified professional body
  • Do you store a lot of data? – Client personal information
  • Do you have employees working from your home? 

If you have answered yes to any of the above questions, it’s time to insure your home-based business. Here are a few broad types of cover that you will be looking at in terms of insuring your business.

Liability Insurance: 

A must for any business, this provides protection should your employees, services or products caused or be alleged to have caused damage to a third party. 

Property Insurance: 

If you own your building or even just office equipment in the building, you need to be protected against flood, fire, theft and vandalism. 

Remember, the cover should be taken out to the amount of the replacement value. 

Commercial Vehicle Insurance: 

Insure your business vehicles against damage, theft, hijacking and collisions. Vehicles should be insured at their market replacement value to ensure that you will be able to get a suitable replacement vehicle.

Business Interruption/Loss of Revenue Insurance: 

Protect your revenue in case the business is unable to operate

Running a small business takes a lot of work, and it can be daunting to decide what insurance will be best for your business. So don’t decide. 

First International can asses your business risks, find the right policies for you and make sure your business is adequately covered in case of any emergencies. 

We manage your insurance policies on your behalf and update them as your business grows.