With lockdown and Covid 19 creating an environment for more home based businesses, running a business from home has become a convenient choice for many entrepreneurs. It gives you flexibility and precious family time, and helps to keep overheads low. However, anyone who owns a home-based business – no matter how small – faces the same risks as any other company. Use these tips to see if it’s time to get business insurance for your venture to protect yourself from damages and liability. Home office vs. home business Simply put: a home office is covered by personal insurance, a home business is not. Anything in your cosy study is covered by your homeowner’s insurance if you occasionally work from home, however the moment it becomes your primary place of business, you have to notify your insurance company. For example, if your home is burgled and the thieves take both personal belongings and business items – e.g. your three sewing machines and a few leather handbags from your fashion business – then an insurer could reject your claim because you did not declare your home business. Evaluating your risk There are a few key areas of risk you need to watch out for. Ask yourself:
How to cover yourself against risks and claims If you answered “yes” to any of the questions above, it might be time to consider specific insurance for your small business. Here are the types of risk and claims you will be covered against:
Worker’s compensation If you have one or more employees at your home-based business, it is your duty to protect their safety by registering with the government’s Workmen’s Compensation Fund. Employers who pay their annual Workers Compensation fees are protected from being sued by employees who are injured at work, while employees are protected from financial loss. Read all about Workmen’s Compensation on Labour.gov.za. We understand that every small business is unique. Companies like Santam Commercial, through their special small business insurance offering (focussing on retail, administrative and manufacturing businesses), they will help to ensure that your start-up is properly covered in an emergency such as a fire or theft. Starting from just R162 per month, you will also be covered for product liability and client legal liability up to R3 000 000. If you would like an obligatory free quote for your company contact Edmond or Marizka from our Short-term department tel 011 658-1333, email service@daberistic.com Source: Santam
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AuthorKevin Yeh Archives
January 2025
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