For more on this part of the insurance industry:
1. visit our commercial insurance page for a look at all products in this sector
2. or focus in on all of the home-based business insurance products available on IB Markets!
Home-based business insurance is a specialised type of coverage designed to protect businesses operating from residential premises. These businesses include a wide range of ventures such as:
This insurance includes public liability, professional indemnity, and product liability coverage. However, most home insurance policies exclude coverage for business-related activities, leaving gaps in protection.
Australian home-based business insurance provides peace of mind by filling critical coverage gaps, safeguarding business owners from financial threats, and ensuring their operations are secure.
Undisclosed business activities leave many home-based businesses exposed to the risk of home insurance cancellation. Global risks such as cyber threats and economic challenges also pose dangers to these enterprises. While these hazards persist, industry trends also influence this particular insurance:
premium transparency needed: consumers seek clarity as climate risks drive higher premiums
proactive security upgrades: home-based businesses are investing in security to address rising risks and costs
demand for tailored coverage: more businesses and regulations require specialised insurance
Rising premiums can be a big challenge for the home-based business insurance sector, especially for clients with tight budgets or not enough coverage. Brokers should help clients find policies that protect against their specific risks.
Yes, it can be. Most home insurance policies do not cover business activities. Failing to disclose a home-based business could void the policy under the Insurance Contracts Act 1984 (Cth) (ICA).
Informing the insurer about business operations helps ensure that the policy remains valid and provides appropriate protection.
Self-employed individuals in Australia often need business insurance to safeguard against threats. Without it, personal assets may be at risk from claims or losses. Key options include:
For individuals working for themselves and from home, having good home-based business insurance provides essential protection.
A sole trader is an individual who owns and operates a business, bearing full legal responsibility for its operations.
A home business refers to the location where business activities are conducted, specifically from the owner's residence.
While a sole trader can operate a home business, the two terms are not synonymous.
To insure themselves, sole traders should:
A home-based business insurance can also help sole traders if they conduct their business at home.
If a sole trader suffers an injury, they are personally responsible for medical expenses and any loss of income. Unlike employees, sole traders are not entitled to workers' compensation.
Yes, sole traders can claim car expenses used for business purposes. The Australian Taxation Office (ATO) allows deductions for vehicle costs incurred while operating the business.
Standard house insurance usually does not cover business activities conducted from home. Running a business may leave gaps in coverage, exposing the owner to financial risks.
Yes, an ABN registered to a home address can affect house insurance. Insurers may consider it a higher risk, possibly impacting premiums or coverage.
Home-based business insurance in Australia covers dangers unique to working from home. Here are the key types of coverage:
public liability insurance: includes claims for third-party injuries or property damage
professional indemnity insurance: protects against claims of negligence or mistakes in services or advice
product liability insurance: covers harm caused by defective or unsafe products
business contents insurance: protects business equipment, stock, and more
cyber liability insurance: safeguards against hacking and data breaches
The right home-based business insurance depends on the specific activities and risks of the business.
Public liability insurance is important if clients or suppliers visit the home, while professional indemnity insurance is ideal for service-based businesses.
