Running a small business from home is the best decision I’ve ever made. From the comfort of my home office, I work on great projects for publishers, businesses and entrepreneurs dotted across the country.
Some days, I just write. Other days, I’m on a video call interviewing talent, bashing out stories before deadline, answering calls and email enquiries, dipping into my cloud accounting program to create quotes, and working out the best way to tell a story. My equipment extends far beyond a pen and paper. Like so many small business owners, I have an iPhone, an iPad, a personal computer with separate camera attached, speakers, a large industrial printer, a laptop, a digital recorder and a tonne of software.
Insurance was certainly less of a concern when I was an employee. I knew that as long as I had home and contents insurance (which of course covered my office and my belongings) and car insurance, then I knew I’d be fine. But writing about insurance for so many years gave me an insight into the high level of underinsurance across Australia, with more than four in five Australian homeowners and renters (83%) believing they were underinsured for their home and contents, according to research conducted by understandinsurance.com.au.
Still, you wouldn’t think insurance could possibly play much of a part in my small business. There’s no obvious risks, after all. I mean, I sit at a desk in my house, and have done for the past decade.
But when I started trading on my own and having my articles published in newspapers and magazines, insurance cover really hit my radar. Obviously I was unlikely to have an accident at work, but whether or not I’d be incapacitated in some way when I wasn’t at work, and would need accident cover had crossed my mind. My office is also separate to the house, so we also wanted to be sure that our standard house insurance would cover my office.
Once I became self-employed, I also made some enquiries about professional indemnity and public liability insurance, which some publishers require freelance journalists to hold. Luckily I was able to get an affordable bulk cover that covers independent journalists. And while I’ve never needed to call upon the cover, it’s a relief to know it’s there.
More recently, I’ve launched a start-up, so I’m looking into whether I might need insurance cover. It was easy to call the insurance firm I’ve worked with before, with the operator actually taking a look at my website while I was on the phone to them so they could understand my new business and what sort of cover I might need.
I’m perhaps a little more conscious of the issues of underinsurance than some home-based business owners given I’ve interviewed several families over the years who have lost everything and didn’t have any insurance. So many people seem to be lulled into a false sense of security, but particularly now I’m responsible for my own income, I know how important is to ensure I respond straight away when a renewal notice arrives. I always consider whether I’ve bought new equipment, whether my revenue has increased, if I’ve taken on new clients, if there have been additions to the office space and whether I’d be covered for loss of profits, or some kind of business interruption.
If you get that feeling that your insurance cover isn’t up to date, act on it. I’ve done my homework to make sure I’m covered. Have you? It only takes a few calls to make sure all the hours you spend running your small business every week is actually worth it.