Do i need business insurance is my LTD is based at my home address?

mrstingy2022

I will be running 1 person LTD from my home address. I have dedicated room for my office which i can lock. Most of the work is laptop work but sometimes i need to connect some parts together which could be called a home lab. I am not planning to leave the home lab unattended when running. I am planning to check with my current insurer AGEAS if they accept it or suggest new premium. Do you know any companies that would cover the above without business insurance? What other conditions i need to be aware when making decision ie. do they cover fire arising from the homelab etc? Thanks in advance for any pointers !!!

anniecave

If this is a room within your home that you are running your own business from (ltd or any other type) and it's not simply computer/clerical based I would be very careful as you will have to declare it to your home insurance provider anyway as they always ask that question…

tasticz

most home insurance cover clerical work for limited companies from home and from memory provide around £2-5k equipment cover but obviously your usual excesses apply.

you need to declare correctly.

Do a dummy quote using fake details on comparison website to understand what questions they ask.

Gonk1967

It's not really just the house insurance you should be thinking about, you should really have insurance for your ltd co too, even if it's just Director's liability Insurance. I run a ltd business from home (garden office) and I have public and employer liability insurance as well as professional indemnity insurance.

I get that through Kingsbridge Contractor and Freelancer Insurance

Jemma01

Are you sure that you don't need a business insurance for indemnity and public liability? My clients wouldn't hire me without the two.

What sort of service are you offering?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6681215/do-i-need-business-insurance-is-my-ltd-is-based-at-my-home-address

There are two separate elements here….

Firstly, are your home insurers comfortable with something beyond clerical work being done at the home, many won't be. The problem isnt just that your business equipment won't be insured but that it would invalidate your home insurance. I had one case a long time ago, major house fire, total estimate cost of the damage was north of £500,000 but they got £0. They had declared the only business use was clerical however on inspecting the damaged property it was discovered the spare bedroom was being used to store stock for their salon. Totally irrelevant to the claim but as the insurer wouldnt have insured the property had it been declared they were entitled to void the policy and avoid the claim.

Secondly, some insurers may be comfortable with the work being done in the home but that is separate to saying they will insure the business equipment and even if they do thats only physical items and doesnt include public liability or professional indemnity or business interruption. In most cases there won't be a statutory requirement for you to hold these but there may be a contractual one or it may simply be prudent to hold them depending on what the business does and especially if you are having to give personal guarantees for the company

mrstingy2022

https://forums.moneysavingexpert.com/discussion/comment/82117693#Comment_82117693

Advice on this forum is a gold dust for me. So many helpful and knowledgable people :) Thanks for highlighting the risk - I do not want to gamble with the house insurance. Insurance companies are in business and not charrities - if they find a way not to pay they will not!

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82117758#Comment_82117758

They are businesses, though some are mutuals which would arguably be different without the investors and shareholders to feed, but there is also an element of fairness to the other customers…

We used to sell legal expenses for £15, I've been asked hundreds of times by people who decided no to pay the £15 if we could just recover their excess or hire car bill for them despite them not paying for that service. They will go off in a huff and post on forums how we find any way to not payout but those that do pay would also feel aggrieved if people who didnt pay got the identical service anyway.

Ultimately the terms determine what's paid out and insurers price based on the terms they are offering. Some insurers are bargain basement only so all of their terms arent great but others do a whole range of products from paired down basic cover for a cheap price to all singing and dancing cover for multiple times the price. The problem is insurance is a highly commoditised distress purchase and the majority of people buy the cheapest they can find and then blame the insurer when their claim isnt covered.

The day someone comes into the pub and brags that they were feeling a little flush this month so treated themselves to a Hiscox home insurance policy I will fall off my stool and then buy the bar a round of drinks.