Working from home insurance
Working or running a business from home? AXA’s working from home insurance package offers you a fantastic standard policy designed to ensure the smooth running of your business during times of unexpected difficulty. In addition to the standard policy features that cover damage to buildings, contents, legal costs and business interruption, AXA also offers a great range of additional add-ons so you can tailor your insurance package to suit your particular requirements. And the option of monthly payments on the premium will enable you to more effectively manage your cashflow.
Included in the standard working from home insurance package is comprehensive cover of your business premises against damage by fire, storm, flooding, leaking water and theft. AXA also offers the option of extending cover for both buildings and contents to include accidental damage. And because your hardware is absolutely crucial to the effective management of your business, comprehensive cover of computer breakdowns, including costs that may be incurred through rental of replacement equipment, is part of the standard policy. AXA also realises that damages that result in disruption of business – and therefore loss of profit - can be extremely costly: a comprehensive business interruption policy is therefore offered as basic, with the option to extend cover up to a 36 month period.
The standard package also comprises comprehensive business liability; employers, public and products liability are all covered, with the option to extend public liability up to £5m and products liability up to £5m in any one period of insurance.
What type of cover does a typical working from home insurance policy provide?
A standard policy will normally include cover for business contents, that is all the contents of your office or workshop, including electronic equipment such as computers and faxes.
There will also be additional covers specifically for your business, including public liability, to cover your customers or other member of the public if they are injured whilst in your home.
Business interruption protection is also a standard cover. In the event of a disaster occurring such as a fire or flood, which temporarily makes it impossible for you to trade properly, the insurer would pay for loss of income.
What optional covers are available?
With the increasing number of laptop computers and mobile phones used in business, you can now buy additional insurance that will cover these both in and out off the office. Known as all risks' cover for business equipment – this includes accidental loss or damage of your portable office equipment.
For those with offices or workshops that are built separately to the main home, but still within the bounds of the property, you can also purchase buildings insurance.
Am I already covered under my normal home insurance policy?
Even if you already have buildings and contents insurance for your house, you may need extra cover if you work from home. Most home insurance policies specifically exclude any cover for business or commercial use, so you should arrange separate working from home insurance.
In particular an ordinary home insurance policy will not provide public liability cover for anyone visiting your home in connection with your business, so separate cover is essential.
What is not covered?
As with all insurance policies there are exclusions, so it’s important to read the key facts or summary of cover before you buy.
It may be a condition of the policy that properties in certain areas have minimum security standards (5 lever mortice locks and window locks) and these will have to be in operation when the home is left unoccupied.
One other important point to check is the value of the excess. This is the amount that the insurer will deduct from your pay out in the event that you make a claim.