South African research shows that 43% of start-up business owners prefer to work from home. But would you be able to claim from your insurer if you are burgled or a fire destroys all your work material? Insurers require that you declare any information that might affect your risk, which is why it’s important to tell your insurance company that you’re running a home-based business.
Your checklist for proper cover
Firstly, South African insurers’ definitions for home-based business differ – ask us if you are fully covered under your household content and all risks cover, or if you should apply for commercial insurance cover.
Ask us if your policy covers office equipment, laptops and computers at home even if they are used for your business. Household contents insurance does not usually cover software or the loss of data caused by equipment failure. If your business relies on electronic data and software you could consider a commercial policy for the reinstatement of your data.
Do you have customers or suppliers who visit your home for business purposes? If so, what will happen if someone gets injured there? You could consider personal liability insurance which will protect you in the event of a lawsuit.
Are the contents or your business covered against basic risks such as fire, lightning, explosion; storm, wind, water, hail, snow; an earthquake; and burglaries? Check with us that you have the correct policy in place.
An important part of the success of any business is ensuring you’re protected from obvious risks. Click here for a checklist on insuring your home-based business.
Check up on your insurer
Always choose an insurance company that has experience in dealing with big and small businesses. Also, check that the insurer has a good record for claim payments. Santam, for example, paid out 99% of claims made in the past year. Find out if there are other benefits for policy holders, such as a 24/7 claims and emergency service.
Small Business Insurance cover
Santam’s small business insurance offering starts from as little as R162 per month. Contact us for a quote.
*Statistics from the 2015 Memeburn start-up survey
This article credit to Santam.