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Home business insurance
Running a business from home? Standard home insurance often doesn’t cover business activities. Here’s what a home-based business usually holds, and how to compare it online.
- Based on business.gov.au guidance
- Public liability, contents and cyber in one request
What insurance does a home-based business need?
business.gov.au says standard home insurance policies often do not cover business activities, and that you should tell your home insurer and check your cover. A home-based business usually holds public liability for clients who visit, contents or a business pack for stock and equipment, professional indemnity if it gives advice, and cyber cover if it takes payments or holds customer data.
Three things to check first
| Check | Why |
|---|---|
| Your home insurer | Tell them you run a business from home and ask what the policy covers. business.gov.au says standard policies often don’t cover business activities. |
| Your lease, if you rent | Many residential leases say tenants can’t use the property for commercial activity. Your landlord also needs to be sure the business doesn’t void their property insurance. |
| Your council | You may need approval, depending on vehicle traffic, employing more than two people from home, noise or waste. |
The covers, by business type
| Home business | Usually holds |
|---|---|
| Consultant, bookkeeper or designer | Professional indemnity, Public liability for client visits, Cyber. |
| Online shop or maker | Business insurance pack or contents cover for stock and equipment, Public liability with products liability, Cyber. |
| Hairdresser, beauty or massage at home | Public liability with treatment risk, Business insurance pack for the fit-out and equipment. |
| Tutor, coach or trainer | Public liability for clients on your property, Professional indemnity for advice. |
| Tradie working from a home base | Public liability, Tools & equipment, Commercial vehicle. |
What home insurance usually leaves out
What a home business adds
- Business stock and equipment above small limits, in a contents or pack policy.
- Clients hurt on your property under public liability.
- Business income if an insured event stops you trading.
- Customer data under cyber cover.
What a home policy often doesn’t cover
- Business activity on many standard home policies, unless disclosed and accepted.
- Your professional advice. That’s professional indemnity.
- Goods in transit to customers, without a specific cover.
- Employees’ injuries. Workers compensation once you employ.
How to compare home business insurance
Home business insurance questions
Does home insurance cover a home business?
Often not. business.gov.au says standard home insurance policies often don’t cover business activities, so tell your insurer and check.
Do I need public liability if clients come to my home?
If a client is injured on your property because of your business, public liability is the cover that responds. Home policies may exclude business visitors.
Can I run a business from a rented home?
Check the lease. Many say tenants can’t use the property for commercial activity, and your landlord’s insurance can’t be voided by it.
Do I need council approval?
Sometimes. It depends on traffic, employing more than two people from home, noise or waste. Ask your council.
Can I compare home business insurance online?
Yes, for public liability, business packs, professional indemnity and cyber. Tell us what you do and we’ll show which route fits.
Can I get combined home and business insurance?
Some insurers offer a home policy with a business section for small home-based businesses, and others treat the two separately: a home and contents policy for the house and a business pack for the business. A broker compares both ways for your situation.
Does running a business from home affect my home insurance?
Yes. Most home policies exclude or limit business activity, and not telling the insurer can affect a claim on the house itself. business.gov.au notes that home-based businesses face the same obligations as other businesses, and insurance is one of them. Tell your home insurer, then insure the business properly.
Keep reading
More cover to compare online
Sources
Home business