Comment by Barbara Gabogrecan
Insurance is not what I would call a ‘sexy topic’; rather it is a necessity that we love to ignore. This is partly due to the unwelcome cost and partly because it all seems so confusing It is so easy to put this in the ‘too hard basket’ believing that ‘it won’t happen to me’ – or at least not before I get around to taking out the insurance I think I need!.
The topic is further confused by home based businesses as they make a decision (often wrongly) as to what home insurance will also cover the business. After all, they don’t want to double up their expenses.
Our expert, Tony Bourke of Allp P/L discusses this topic in some depth and points out the traps to avoid and puts you in a position where you can secure insurance with the knowledge that what you purchased is right for you. Take the time to read more of his tricks, tips and traps and make an informed decision when purchasing insurance.
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Tips, Tricks and Traps when deciding on Insurance
By Tony Bourke of Allp P/L
The world of insurance can be confusing, frustrating and if you get your choices wrong…… financially crippling.
A lot of insurers seem to be pushing the cheapest price, discount and loyalty buttons to try and get your business however insurance is definitely not a product you can afford to purchase based on the cheapest price alone.
Why Home and Contents Insurance is Not Enough For a Home Based Business
The biggest mistake I see made by home based business owners is assuming that the home and contents policy they have will be sufficient to cover their business at home.
If you run a home based business here is the list of things to think about as far as insurance is concerned:
Property, Contents and Stock of the business – Never make the assumption that your home insurance will cover your business contents, stock and fixtures etc. Some policies may contain a small limit to cover your home office contents such as your desktop computer and printer however no home insurance policies will cover stock. You will always need a separate business policy to cover stock.
Public Liability Insurance – Your home and contents policy will not pick up cover for public liability on your business. You must have a separate public liability policy to cover your business activities.
Portable Equipment owned by the business – Never assume that your home and contents policy will cover things such as laptops, IPads etc owned by the business. Quite often there will be an exclusion for these sort of business items in your home policy. Also never assume that they are automatically covered if they are lost or damaged away from the home…. most of the time this won’t be covered and you should have these items insured on a separate business policy.
Thanks for the help.
Insurance can be so hard to figure out, and this article has been very helpful. Thanks!
I will take on board what you have said, but insurance will always be a difficult subject for me to deal with- but thankyou anyway!