Compare home business insurance

Running a business from home brings risks that a normal household policy may leave out, such as business stock, work computers and customers who visit (GOV.UK). Insurance for a home-based business is designed to fill those gaps.

One form on Quotezone gets your details to UK providers, whether you need a single cover or a full set.

What does home business insurance cover?

It depends on your work, so most policies are built from a few parts:

• Business equipment and stock: computers, tools, samples and goods you sell, at home and sometimes away from it
• Public liability: if a client, courier or other visitor gets hurt, or has something damaged, because of your work (business.gov.uk)
• Professional indemnity: if a client says your work or recommendations cost them money
• Product liability: if you make or sell goods, such as crafts, cakes or cosmetics (business.gov.uk)
• Employers’ liability: compulsory if you employ someone, unless an exemption applies (GOV.UK)
• Business interruption: lost income if a fire or flood at home stops you working (business.gov.uk)

Some insurers sell these as one policy for a home business. Others add business cover to your home insurance, or sell it separately. Either way, list everything you use for work, so nothing is left out.

Does my home insurance cover my business?

Possibly not, or only up to a low limit. business.gov.uk says you should update your existing insurance if you use your home for business purposes (business.gov.uk).

Tell your home insurer what you do, how much business equipment you keep and whether clients visit. Some can extend your cover, while others will ask you to buy a separate policy.

An employee who works from home for an employer is in a different position. Your employer may insure its own equipment, so check what it has arranged before buying cover for its laptop or phone.

Permissions, rates and rules for home businesses

Insurance is only one thing to check. GOV.UK says your mortgage lender or landlord may need to agree, and the local planning authority too if you’re planning major alterations (GOV.UK).

Your council may need to know if you will have lots of customers or deliveries, want to advertise outside, or need a licence (GOV.UK).

You don’t usually pay business rates if you use a small part of your home, such as a bedroom office, or sell goods by post (GOV.UK).

Rates may apply if customers visit, you employ people at the property or you’ve converted part of it, such as a garage turned into a hairdresser’s (GOV.UK). Health and safety rules apply as they would to any business (GOV.UK).

Who needs cover for a business run from home?

• consultants, bookkeepers and designers working from a home office
• online sellers and crafters storing stock at home
• beauty, fitness and wellbeing practitioners who see clients at home
• tutors and music teachers who teach at home
• tradespeople who keep tools and materials at home (tradesman insurance)
• childminders caring for children in their own home (insurance for childminders)

If you work on your own, our self-employed and sole trader insurance page explains the covers sole traders usually compare.

Using your car or van for the business

Driving to clients, collecting stock or making deliveries counts as business use. The business.gov.uk site says the law requires motor insurance for vehicles you use in your business, including your own car (business.gov.uk).

A policy for social and commuting use may not cover those trips, so tell your insurer. Our page on business car insurance explains the classes of use.

Customer data and online selling

Many home businesses trade online or keep client details on a laptop. business.gov.uk says cyber insurance may be needed if you trade online or handle customer data (business.gov.uk).

Check whether a home business policy includes any cyber cover, or compare cyber insurance separately.

How much does home business insurance cost?

Prices are set case by case. The main factors are:

• what your business does and whether clients visit
• the value of business equipment and stock kept at home
• where you live and how the property is secured
• the liability limits you choose
• your turnover, staff numbers and claims history

Quotes include Insurance Premium Tax, charged at 12% under the standard rate (HMRC).

If you are self-employed, you can claim a share of household running costs, such as heating and electricity, for the part of your home used for work (GOV.UK).

There is also a flat rate for people who work 25 hours or more a month at home: £10, £18 or £26 a month, depending on the hours (GOV.UK).

Example: a dog groomer at home

Picture a dog groomer who works from a converted garage at home. Customers bring their dogs to the house, so public liability matters, and the grooming kit needs cover against theft or damage.

Because the garage was converted for the business, the groomer also checks with the council and the mortgage lender. Business rates may apply to that part of the property (GOV.UK).

Do I need employers’ liability if I work from home?

Only once you employ someone. You need it from the day you become an employer, and the minimum is £5 million from an authorised insurer (GOV.UK).

Close relatives are an exception, but HSE notes this doesn’t apply where the family firm is incorporated (HSE).

Get quotes through Quotezone

Fill in one short form about your business, your home and the cover you need. Your details go to UK providers, who may then contact you with prices to compare.

Start a quote and see what cover for your home business could cost.

You might also need

If you hold customer details or sell online, cyber cover options can help after a data breach. If you drive to clients, check your car insurance covers business use.